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Using the relevant information in this table, compute the cash flow impact from the change in net working capital between 2019 and 2020. 2019 2020 Inventory 150 175 Accounts Receivable 20 25 Accounts Payable 25 20 Depreciation 70 75 -35 35 30 -30

Using the relevant information in this table, compute the cash flow impact from the change in net working capital between 2019 and 2020. 2019 2020 Inventory 150 175 Accounts Receivable 20 25 Accounts Payable 25 20 Depreciation 70 75 -35 35 30 -30

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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**Net Working Capital Calculation: Cash Flow Impact for 2019-2020** Use the relevant data from the table below to calculate the cash flow impact from the change in net working capital between the years 2019 and 2020. | Category | 2019 | 2020 | |------------------------|------|------| | **Inventory** | 150 | 175 | | **Accounts Receivable**| 20 | 25 | | **Accounts Payable** | 25 | 20 | | **Depreciation** | 70 | 75 | **Options:** - O -35 - O 35 - O 30 - O -30 **Explanation:** Evaluate the changes in inventory, accounts receivable, and accounts payable, as these affect the net working capital. Depreciation does not impact cash flow directly in this context. Select the correct option that represents this impact.
Transcribed Image Text:**Net Working Capital Calculation: Cash Flow Impact for 2019-2020** Use the relevant data from the table below to calculate the cash flow impact from the change in net working capital between the years 2019 and 2020. | Category | 2019 | 2020 | |------------------------|------|------| | **Inventory** | 150 | 175 | | **Accounts Receivable**| 20 | 25 | | **Accounts Payable** | 25 | 20 | | **Depreciation** | 70 | 75 | **Options:** - O -35 - O 35 - O 30 - O -30 **Explanation:** Evaluate the changes in inventory, accounts receivable, and accounts payable, as these affect the net working capital. Depreciation does not impact cash flow directly in this context. Select the correct option that represents this impact.
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