The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000.Accounts receivable are currently $525,000 and are expected to increase by 9 percent if this project is accepted.What is the project's initial cash flow for net working capital?
A)-$82,250
B)-$12,250
C)$12,250
D)$36,250
E)$44,250

Question

Quizplus · Accepted Answer

NWC requirement = -$216,000 + $181,000 - ($525,000 × 0.09) = - $82,250

The Buck Store Is Considering a Project That Will Require