Floral Shoppes has a new project in mind that will increase the accounts receivable by $19000, decrease accounts payable by $4000, increase fixed assets by $27000, and decrease inventory by $2000. What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?A. $25000B. $12000C. $17000D. $21000E. $52000

Question

20-11-2020
Business

contestada

Floral Shoppes has a new project in mind that will increase the accounts receivable by $19000, decrease accounts payable by $4000, increase fixed assets by $27000, and decrease inventory by $2000. What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?A. $25000B. $12000C. $17000D. $21000E. $52000

Respuesta :

Otras preguntas

a square is constructed on each side of an equilateral triangle, and segments are drawn between adjacent external vertices of the three squares to form hexagon

Fiona raised 2/7 of the money and Patrick raised 3/5 of the money. The rest of the money was raised by the rest of the group. What fraction of the money was rai

A student measures the mass 8cm block of brown sugar to be 12.9g. what is the density of the brown sugar.

Where do the youngest rocks in an eroded basin outcrop? Select all that apply. View Available Hint(s) Where do the youngest rocks in an eroded basin outcrop? Se

when a world of trouble happens don't reply with anger. you reply with the opposite of what the world is giving to you so when you want to do something do it po

6. A hospital that employs 336 people must decrease staff size by 1/8. How many employees will lose their jobs? A. 60 B. 144 C. 42 D. 269

Wilburs Grandmother opened a saving account for him on his 5th birthday. She deposited $100.00 in this account to open it. The account earns simple interest at

What is the common factor of 3x^2(4x-3)+ 2 (4x-3)

The price of an item has been reduced by 20%. The origanal price was $90. What is the price of the item now?

ACCESS MORE EDU ACCESS Universidad de Mexico

abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2020-11-21T01:18:42+01:00

Answer:

D. $21000

Explanation:

Calculation for the amount the firm should use as the initial cash flow attributable

Using this formula

Initial cash flow attributable to net working capital = Change in current assets - Change in current liabilities

Let plug in the formula

Initial cash flow attributable to net working capital=[(Increase in Account Receivable $19,000 + Decrease in inventory $2,000)] - ( Decrease accounts payable $4000)

Initial cash flow attributable to net working capital= (19,000 - 2,000) - [-4,000]

Initial cash flow attributable to net working capital=17,000 + 4000

Initial cash flow attributable to net working capital=$21,000

Therefore the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project will be $21,000