Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at10%of the monthly projected sales. These plastic bottles cost$0.007each. The monthly sales for the first four months of the coming year are as follows: January: 2,300,000 February: 2,200,000March: 2,700,000April: 3,300,000 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.)

Monthly sales January 2,300,000 February 2,200,000 March 2,700,000 April 3,300,000

Answered: Working capital cash flow. Cool…

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 12P: Strickler Technology is considering changes in its working capital policies to improve its cash flow...

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Working capital

cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at

10%

of the monthly projected sales. These plastic bottles cost

$0.007

each. The monthly sales for the first four months of the coming year are as follows:

January: 2,300,000
February: 2,200,000
March: 2,700,000
April: 3,300,000

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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