Cash flows associated with changes in working capital

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Reference no: EM131179882

Castle View Games would like to invest in a division to develop software for video games. To evaluate this decision, the firm first attempts to project the working capital needs for this operation. Its chief financial officer has developed the following estimates (in millions of dollars). 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. Year 1 Year 2 Year 3 Year 4 Year 5 Cash 5 11 16 16 15 Accounts receivable 21 22 25 23 23 Inventory 6 9 11 12 13 Accounts payable 16 21 23 26 31. 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 a negative numbers.)

The Change in working capital year 1 $___Million(round to the nearest integer.)

The Change in working capital Year 2 $___ Million(round to the nearest integer.)

The Change in working capital year 3 $___Million(round to the nearest integer.)

The Change in working capital Year 4 $___Million(round to the nearest integer.)

The Change in working capital year 5 $___Million(round to the nearest integer.)

Reference no: EM131179882

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