Harrington inc is introducing a new product in its line of

Reference no: EM13573076

Harrington Inc. is introducing a new product in its line of household appliances. Household products generally have 10 year life cycles and are viewed as capital budgeting projects over that period. Harrington's working capital forecast for the project is as follows: $1.0 million will be invested in inventory before the project begins. Inventory will increase by $100,000 in each of the first six years. Accounts receivable will increase by $150,000 in each of the first four years and by $100,000 in each of the next two years. Accounts payable will increase by $110,000 in each of the first six years. During the last four years, the balance in each of these accounts will return to zero in foru equal increments. Accruals are negligible.Calculate the cash flows associated with working capital from the initial outlay to the end of the project's life.

Reference no: EM13573076

Questions Cloud

Through mid december of 2011 purchases were limited to 8000 : cork company imports and sells a product produced in canada. in the summer of 2011 a natural disaster disrupted

For this assignment you are to create a poster using pop : for this assignment you are to create a poster using pop art or op art influences. research the following artists for

Catseye marble co is thinking of replacing a manual : catseye marble co is thinking of replacing a manual production process with a machine. the manual process requires

Cba company reported total stockholders equity of 85000 on : 1.at company purchased a tractor at a cost of 60000 on january 1 2010. the tractor has an estimated residual value of

Harrington inc is introducing a new product in its line of : harrington inc. is introducing a new product in its line of household appliances. household products generally have 10

The controller of dash shoes inc instructs you to prepare a : the controller of dash shoes inc. instructs you to prepare a monthly cash budget for the next three months. you are

Peter paul rubens was one of the favorite artists of louis : peter paul rubens was one of the favorite artists of louis xiv known as the sun king. describe a painting by rubens

Watson packaging sold a machine for 15000 the company : watson packaging sold a machine for 15000. the company bought this machine for 40000 seven years ago and was

You are planning to make monthlydeposits of 70 into a : you are planning to make monthlydeposits of 70 into a retirement account that pays 6 percent interest compounded

User Account

All Pages