What is the forecast change in net operating working capital

Assignment Help Financial Management

Reference no: EM131834995

ABC expects to drop from $17,990,000 to $15,238,000 in sales next year as the gross profit margin increases from 40.6 percent to 50.9 percent following a series of price increases for their core products. The Days of Accounts Receivable is forecast to change from 10.7 days to 13.5 days and the Days of Inventory is forecast to change from 30.2 days to 35.3 days. Those changes will be partially offset by an anticipated change in the Days of Accounts Payable from 27.9 days to 30.4 days. Assuming that actually occurs, what is the forecast change in the net operating working capital. If your answer is negative, be sure to include the negative sign.

Reference no: EM131834995

Questions Cloud

Earn interest at the same nominal rate : These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate

The p and e ratio-the book value and beta considerations : Given the P/E ratio, the book value, and beta considerations, is the stock over-priced, under-priced, or just right? Should they be paying a dividend?

Find the initial monthly loan payment : Two years ago Peter borrowed from a bank 20 000 euros for 6 years. Find the initial monthly loan payment. Find the loan balance after two years.

What should be the annual stated rate : What should be the annual stated rate that SLB should offer its depositors?

What is the forecast change in net operating working capital : Assuming that actually occurs, what is the forecast change in the net operating working capital.

What should be additional annual investments : What should be additional annual investments John has to make in order to accumulate the necessary saving for retirement?

Should the firm borrow the money to take the discount : Should the firm borrow with the 20 percent compensating balance requirement? Should the firm borrow the money to take the discount?

What volume of sales would the npv just break even : PCs Forever is a company that produces personal computers. At what volume of sales would the NPV just break even?

What does credit have to do with economic expansion : What is credit? What does credit have to do with economic expansion? If credit stops or slows, how does this affect “the business of business?

User Account

All Pages