Working Capital Financing - Company A reported the following financial information in a recent financial statement...

Working Capital Financing - Company A reported the following financial information in a recent financial statement ($ milllions):

Sales	$50,272
Cost of sales	37,611
Inventory	5,897
Accounts receivable	2,348
Accounts payable	4,894

(a) Compute the additional working capital financing period for Company A? (include formulas used to answer problem)

Working Capital Financing - Company B reported the following financial information in a recent financial statement ($ millions):

Sales	$87,048
Cost of sales	77,739
Inventory	6,638
Accounts receivable	965
Accounts payable	6,544

(b) Compute the additional working capital financing period for Company B? (include formulas used to solve problem)

Expert Solution

Working Capital = Current Assets -Current Labilities

Requirement a
Project A
	($ millions)
Inventory	5,897
Accounts Receivable	2,348
Total Current Assets	8,245

Accounts Receivable	2,348
Total Current Liabilities	2,348

Additional Working Capital	5,897

Requirement b
Project B
	($ millions)
Inventory	6,638
Accounts Receivable	965
Total Current Assets	7,603

Accounts Receivable	6,544
Total Current Liabilities	6,544

Additional Working Capital	1,059

jeff jeffy answered 1 year ago

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