What was the investment in operating net working capital

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Reference no: EM132062580

XZY corp. Sales increased in 2011 by 20%. Its carries inventory is always 30% of sales; its accounts receivable is 25% of sales and its accounts payable 8% of sales.

The company also needs 1% of sales in cash for operations but carries cash and securities that make 20% of sales. It finances its operations with short term debt in the amount of 15% of sales.

The tax rate is 3% of sales. If sales in 2010 were $1,000,000, what was the investment in operating net working capital in 2011?

Reference no: EM132062580

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