Quartely working capital levels for your firm for the next year are included in
ID: 2732656 • Letter: Q
Question
Quartely working capital levels for your firm for the next year are included in the following table. Quarters ($000) 1 2 3 4 Cash 100 100 100 100 Accounts Receivable 205 105 96 603 Inventory 199 495 898 47 Accounts Payable 104 95 97 104 Qustions (a)The permament working capital needs of your company are $------.(Round to nearest dollar.) (b)The temporary needs for the first quarter are $------.(Round to nearest dollar.) (c)The temporary needs for the second quarter are $------.(Round to nearest dollar.) (d)The temporary needs for the third quarter are $------.(Round to nearest dollar.) (e)The temporary needs for the fourth quarter are $------.(Round to nearest dollar.)
Explanation / Answer
(a) The permanent working capital needs of your company are $2648.
(b) The temporary needs for the first quarter are $400.
(c) The temporary needs of second quarter are $605.
(d) The temporary needs of third quarter are $997.
(d) The temporary needs of fourth quarter are $646.