Assuming that Castle View currently does not have any working capital invested i
ID: 2738134 • Letter: A
Question
Assuming that Castle View currently does not have any working capital invested in this division, calculate the cash flows associated with changes in working capital for the first five years of this investment. Enter decreases as negative numbers.) The net working capital in year 1 is $ million. (Round to the nearest integer.) The change in working capital for year 1 is million. (Round to the nearest integer.) The net working capital in year 2 is million. (Round to the nearest integer.) The change in working capital for year 2 is million. (Round to the nearest integer.) The net working capital in year 3 is million. (Round to the nearest integer.) The change in working capital for year 3 is million. (Round to the nearest integer.) The net working capital in year 4 is million. (Round to the nearest integer.) The change in working capital for year 4 is million. (Round to the nearest integer.) The net working capital in year 5 is million. (Round to the nearest integer.)Explanation / Answer
Solution.
Year 1 2 3 4 5 Cash 5 10 14 14 0 Account receivable 22 23 26 24 26 Inventory 5 7 10 14 14 Total Current asset 32 40 50 52 40 Account payable 17 20 24 16 32 Total Current Libilities 17 20 24 16 32 Working Capital 15.00 20.00 26.00 36.00 8.15 Change in working Cap. 15.00 5.00 6.00 10.00 (27.85)