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Working capital working

This topic has 2 replies, 2 voices, and was last updated 6 months ago by John Moffat.

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December 25, 2021 at 11:44 am #644803
humai
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Sir in specimen exam Burang co Qs examiner has shown working capital working as following

0 1 2 3 4
Working capital (20% of sales revenue) 4·97 8·54 12·36 7·38
Working capital required/(released) 4·97 3·57 3·82 (4·98) (7·38)

But instead of above can I show working capital working as following
0 1 2 3 4
Working capital (20% of sales revenue) 4.97 8.54 12.36 7·38
Working capital required/(released) 4·97 3·57 3·82 (4·98)
Working capital recovery (7.38)

Then In NPV schedule I will show outflows with negative sign and inflows with positive sign
December 25, 2021 at 11:54 am #644805
humai
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Basically in WC working

In WC examiner has shown from Yr 1 to 4 and then in WC required he has shown from Yr 0 to 3 and then recovered in 4th year

I instead want to show in WC from Yr 0 to 3 then in WC required from Yr 0 to 3 and then recovered in 4th year. Would this be fine and correct?
December 25, 2021 at 4:09 pm #644814
John Moffat
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Yes, that would be correct.
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