Bruno's is considering a new project that will require $335,000 for fixed assets, $110,000 for inventory, and $21,000 for accounts receivable

Finance Dec 15, 2020

Bruno's is considering a new project that will require $335,000 for fixed assets, $110,000 for inventory, and $21,000 for accounts receivable. Short-term debt is expected to increase by $14,900. What is the required increase in net working capital (i.e. ) for this project? (round $ to ZERO place after the decimal)

Expert Solution

Answer

Increase in net working capital= $116100

Explanation

Net working capital= Inventory+ Account receivables- Short term debt

= $110,000 + $21,000- $14,900

= 116100

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