What is the incremental cash flow related to working capital

Reference no: EM13291716

Investment cash flows: Six Twelve 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. What is the incremental cash flow related to working capital when the store is opened?

Reference no: EM13291716

Questions Cloud

What is the implicit cost of the trade credit : Cost of trade credit: Mill Street Corporation sells its goods with terms of 4/10 EOM, net 60. What is the implicit cost of the trade credit?

What are the relevant cash flows : The marginal tax rate is 30 percent. What are the relevant cash flows? How do they change if the market price of the machine is $600,000 instead?

At present the elementary liquid-phase reaction : At present the elementary liquid-phase reaction A + B ? R + S takes place in a plug flow reactor using equimolar quantities of A and B. Conversion is 96%, CAO = CBO = 1 mol/liter. If a mixed flow reactor ten times as large as the plug flow reactor we..

Determine how many kilo grams of conductor are in the line : a line is 845miles in length. the line contains four conductors, each weighing 2526lb per 1000 ft. how many kilo grams of conductor are in the line

What is the incremental cash flow related to working capital : What is the incremental cash flow related to working capital when the store is opened?

Explain what is vr (ideal) for nitric oxide : A researcher suspects that the pressure gauge on a 49.9-L gas cylinder containing nitric oxide is broken. An empty gas cylinder weighs 135 lb. The weight of the partially full cylinder is 161.5 lb. This cylinder is located in a relatively chilly s..

What are the parent''s blood genotypes : Mary has type A blood and her husband has type B blood. Her husband'd parents both had type AB. They have three children, one with type A, one with type AB, and one with type B. What are the parent's blood genotypes? What child was adopted and WHY?

Calculate the load power and apparent power to load : The load can be connected in either wye or delta configuration. Calculate the load power and apparent power when connected to a 208V 60Hz supply, with each of wye and delta connection.

Estimate the current in the wire : In a wire with a 1.67-mm2 cross-sectional area, 8.43 × 1020 electrons flow past any point during 3.87 s. What is the current in the wire

User Account

All Pages