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kenny6666 [7]
3 years ago
7

The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-yea

r project that will increase sales from its current level of $279,000 to $308,000 the first year and to $314,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?
Business
1 answer:
mylen [45]3 years ago
0 0

Answer:

$56,520

Explanation:

As per given data

Year     Sales          Working Capital 18%

   0      $279,000   ($50,220)

   1       $308,000   ($5,220)

   2      $314,000    ($1,080)

   3      $314,000    $0

   4      $314,000   $56,520

As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project

Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.

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Answer:

UCL 14.08oz

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Explanation:

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LCL= 14 -3σ´x=14 -3(0.025)

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4 0
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Strategic positioning helps determine where a business stands against its competitors, consumers, and the market. Companies that are unique and stand out by their customer connections often have a greater change at competitive advantage and a strong strategic positioning. 
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7 0
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The economy is at full employment when all unemployment is?
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Given that the economy is present at full employment.

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At the current year-end, Simply Company found that its overhead was underapplied by $2,500, and this amount was not considered m
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