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Floral shoppes has a new project in mind that will increase accounts receivable by $19,000, decrease accounts payable by $4,000, increase fixed assets by $27,000, and decrease inventory by $2,000. what is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?

Respuesta :

$40,000. To get $40,000 add and subtract all costs above from each other and the total will be the number that should be used for net working capital. Networking capital is the sum of all current assets and liabilities for a company. 
Increase accounts receivable by $19,000, decrease accounts payable by $4,000, increase fixed assets by $27,000 = $40,000.

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