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Question
Home Furnishings is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing floor inventory by $486,000 and increasing its debt to suppliers by 90 percent of that amount. The company will also spend $947,000 to expand the size of its showroom. As part of the expansion plan, the company expects accounts receivable to rise by $205,000. For the project analysis, what amount should be used as the initial cash flow for net working capital?
A) −$156,400
B) −$176,600
C) −$271,000
D) −$253,600
E) −$391,000
Answer
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Related questions
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