In: Finance
Weston Distributions has current sales of $1,400,000, current liabilities of $186,000, and net working capital of $88,000. The projected sales for next year are $1,540,000. All net working capital accounts change directly with sales. What is the projected value of current assets for next year?
$292,600 |
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$314,800 |
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$273,200 |
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$286,600 |
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$301,400 |
Working Capital = Current Assets - Current Liabilities | |||
88000= Current Assets-186000 | |||
Current Assets = $274000 | |||
Increase in sales in % = ($154000-1400000)/1400000 | |||
=10% | |||
Current assets for next year = $274000*1.10 | |||
=$301400 | |||