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Calculating changes in net operating working? capital

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(Calculating changes in net operating working? capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of ?$785,000. Tetious Dimensions has a 30 percent marginal tax rate. This project will also produce ?$185,000 of depreciation per year. In? addition, this project will cause the following changes in year? 1:

 

Without the Project 

With the Project

Accounts receivable

?$50,000 

?$91,000 

Inventory

96,000

183,000 

Accounts payable

72,000

125,000 

What is the? project's free cash flow in year? 1?

The free cash flow of the project in year 1 is ?$?

?(Round to the nearest? dollar.)

Reference no: EM133056642

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