financial management

posted by .

A new project will increase inventory and accounts receivable by an average of $1 million each. Cash levels and other working capital accounts are expected to not change. What effect will the project have on working capital?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Accounting

    How might borrowing $1 million long-term and investing the proceeds in inventory affect cash and net working capital?
  2. accounting

    working capital management: how this transaction might affect dynamic mattress in cash and net working capital, customer paying a $2,500 bill resulting from a previous sale. Paying $5,000 previously owed to one of its suppliers, borrowing …
  3. Finance

    2004, 2005, 2006, 2007 oAnalyze federal express working capital management. Explain why the company’s operating and cash cycles are currently optimized. If you think they are not optimized, explain why. *Analyze the company's working …
  4. Finance

    Managing Working Capital. A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect …
  5. pilgram

    Managing Working Capital. A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect …
  6. fin 324

    5.) Managing Working Capital. A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect …
  7. Finance

    We are considering the introduction of a new product. Currently we are in the 34% tax bracket with a 15% discount rate. This project is expected to last five years and then, because this is somewhat of a fad project, it will be terminated. …
  8. accounting

    Based on the financial statements for Jackson Enterprises (income statement, statement of owner's equity, and balance sheet) shown below, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance …
  9. financial statement and reporting

    Identify the working capital accounts related to (a) revenues recognized and deferred, (b) cost of goods sold, (c) employee salary and wages, and (d) income tax expense. For each account, indicate whether an increase in the working …
  10. Account -2

    Based on the financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) shown below, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable …

More Similar Questions