Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.005 each. The monthly sales for the first four months of the coming year are as follows: January: 2,000,000 February: 2,200,000 March: 2,700,000 April: 3,000,000 What is 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? Note: Enter a decrease as a negative number. What is the change in working capital for January? (Round to the nearest dollar.)
Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.005 each. The monthly sales for the first four months of the coming year are as follows: January: 2,000,000 February: 2,200,000 March: 2,700,000 April: 3,000,000 What is 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? Note: Enter a decrease as a negative number. What is the change in working capital for January? (Round to the nearest dollar.)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...
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![Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.005 each. The
monthly sales for the first four months of the coming year are as follows:
January: 2,000,000
February: 2,200,000
March: 2,700,000
April: 3,000,000
What is 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? Note: Enter a decrease as a negative number.
What is the change in working capital for January?
(Round to the nearest dollar.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F645d8370-560a-4bfd-8b19-1c85d7e0e922%2F913e2c47-3775-4ffe-b1e4-9939946a5568%2Fp8fnwbl_processed.png&w=3840&q=75)
Transcribed Image Text:Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.005 each. The
monthly sales for the first four months of the coming year are as follows:
January: 2,000,000
February: 2,200,000
March: 2,700,000
April: 3,000,000
What is 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? Note: Enter a decrease as a negative number.
What is the change in working capital for January?
(Round to the nearest dollar.)
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