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Swamp & Sand Industries has the following data. Calculate its Net Working Capital (NWC) adjustment for...

Swamp & Sand Industries has the following data. Calculate its Net Working Capital (NWC) adjustment for cash flow in year X2.

X1 X2
Cash 100 134
Receivables 230 221
Inventories 450 422
Payables 300 317
Debt 140 286
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Answer #1
Calculation of net working capital adjustment for cash flow in Year 2
Increase in Cash $34.00
Decrease in receivable $9.00
Decrease in Inventories $28.00
Increase in Payables $17.00
Net working capital adjustment to cash flow in Year 2 $88.00
Note : Debt is not a part of a net working capital , hence not taken into account.
Rather is is a part of Financing cash flow.
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