Question

# For project A, the cash flow effect from the change in net working capital is expected...

For project A, the cash flow effect from the change in net working capital is expected to be -100 dollars at time 2 and the level of net working capital is expected to be 1,600 dollars at time 1. What is the level of current liabilities for project A expected to be at time 2 if the level of current assets for project A is expected to be 2,900 dollars at time 2?

For project A, the cash flow effect from the change in net working capital is expected to be -300 dollars at time 2 and the level of net working capital is expected to be 1,900 dollars at time 1. What is the level of current assets for project A expected to be at time 2 if the level of current liabilities for project A is expected to be 1,700 dollars at time 2?

1.
Working capital at time 2=Working capital at time 1-Cash flow effect=1600-(-100)=1700

Working capital at time 2=Current Assets at time 2-Current Liabilities at time 2

=>2900-1700=Current Assets at time 2
=>Current Assets at time 2=1200

2.
Working capital at time 2=Working capital at time 1-Cash flow effect=1900-(-300)=2200

Working capital at time 2=Current Assets at time 2-Current Liabilities at time 2

=>2200+1700=Current Liabilities at time 2
=>Current Liabilities at time 2=3900

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