The following table tracks the main components of working capital over the life of a four-year project.
2016 | 2017 | 2018 | 2019 | 2020 | |
Accounts receivable | 0 | 150,000 | 225,000 | 190,000 | 0 |
Inventory | 75,000 | 130,000 | 130,000 | 95,000 | 0 |
Accounts payable | 25,000 | 50,000 | 50,000 | 35,000 | 0 |
Calculate net working capital and the cash inflows and outflows due to investment in working capital. (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
2016 | 2017 | 2018 | 2019 | 2020 | |
Net working capital | |||||
Cash flows |