Working capital cash flow. Tires for Less is a franchise of tire stores throughout the greater Northwest. It has projected the following unit sales and costs for each tire type for the coming year: Snow Tires Rain Tires All-Terrain Tires All-Purpose Tires Cost per tire $ 42 $ 31 $ 48 $ 37 Sales: Jan. $44,000 $20,000 $ 4,000 $60,000 Sales: Feb. $38,000 $36,000 $ 5,000 $54,000 Sales: Mar. $14,000 $46,000 $ 7,000 $50,000 Sales: Apr. $ 2,000 $22,000 $ 8,000 $60,000 Sales: May $ 0 $40,000 $12,000 $65,000 Sales: Jun. $ 0 $20,000 $30,000 $68,000 Sales: Jul. $ 0 $ 2,000 $39,000 $75,000 Sales: Aug. $ 0 $ 2,000 $22,000 $80,000 Sales: Sep. $ 0 $ 2,000 $ 8,000 $70,000 Sales: Oct. $ 0 $14,000 $ 2,000 $70,000 Sales: Nov. $16,000 $18,000 $ 1,000 $65,000 Sales: Dec. $82,000 $20,000 $ 3,000 $60,000 Sales: Jan. $48,000 $22,000 $ 5,000 $60,000 The company policy is to have the next month’s anticipated sales for each tire type in the warehouse. Shipments are made to the various stores throughout the Northwest from the central warehouse. Show the anticipated cost of tires each month for these projected sales by tire type, the beginning inventory volume and ending inventory volume each month for each tire type, and the monthly increase or decrease in cash flow for inventory given that an increase is a use of cash and a decrease is a source of cash. Find the total cost of goods sold and the change in monthly working capital cash flow for all tires. What do you notice about the working capital change when you combine the cash flows of all four tires
