Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the project will require $97 million in inventory

The project will require $97 million in inventory (raw materials and finished products) as well...

90.2K

Verified Solution

Question

Finance

The project will require $97 million in inventory (raw materials and finished products) as well as $61 million in receivables (credit for customers). An extra $50 million in cash (i.e., precautionary bank deposits and short-term marketable securities held as liquidity reserves) is required as a safety stock to provide financial flexibility (that enables avoiding running out of cash in case of temporary declines in operating cash flows). Suppliers (companies which sell the parts and raw materials that are used in the production of the 110,000 units produced by the factory) are expected to provide short-term trade credit that is expected to sum to $36 million in accounts payable while short-term accrual financing of $21 million is supplied by the employees (who don't get paid until the end of the month).

Compute the net working capital. Properly list all assets and liabilities.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Yolanda and Mack are negotiating a contract deal for sale of goods. Yolanda offers Mack $2...

Finance
Q

which nerve conducts impulses associated with the sense of gustation? a) vestibulocochlear b) oculomotor c) trigeminal d) facial e) glossopharyngeal f) hypoglossal g)...

Medical Sciences
Q

Describe and discuss: The method required to specify inlet and outlet conditions for subsonic and supersonic flows. The...

Mechanical Engineering
Q

5- What is the problem caused by information overload? 6- What is the Creative Process? and...

General Management
Q

Required information Exercise 5A-2 (Algo) Least-Squares Regression [LO5-11] [The following information applies to the questions displayed below.] Bargain Rental...

Accounting
Q

Identify the fuel that is available in larger quantities O Thorium O Calcium O Sodium...

Biology
Q

A particle is projected from horizontal ground at some angle such that its horizontal component...

Physics
Q

According to the National Institutes of Health 68 of adults experience some form of lactose...

Statistics
Q

Find mZZ 4 Z X Y Write your answer as an integer or as a...

Algebra
Q

It is acceptable to capitalize and defer a cost when it creates an asset that...

Accounting
Q

It says the answer is $5,796, what was incorrect about this method? ...

Accounting
Q

Which of the following statements are true? i. Scenario analysis identifies the most important drivers...

Accounting