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What is incremental cash flows related to working capital

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Point 1: Six Twelve Inc. is considering opening up a new convenience store in downtown New York City. The expected annual revenue is $800,000. To estimate the increase in working capital, analysts estimate the ratio of cash and cash equivalents to revenue to be 0.03 and the ratio of receivables, inventories, and payables to revenue to be 0.05, 0.10, and 0.04, respectively in the same industry.

Question 1: What is the incremental cash flows related to working capital when the store is opened?

Reference no: EM132492543

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