Finance
Relevant Cash Flow Exercise
Joe Collectibles projects revenues of $20 million, operating expenses of $10 million, and taxes of $2 million for the coming year. Projected operating expenses include depreciation of $1.2 million. Joe Collectibles plans to make $0.75 million capital investments during the period, and it anticipates the following changes in its working capital accounts:
| Beginning | End | |
| Accounts Receivable | $1.5m | $2.7m |
| Inventory | 0.5m | 2.2m |
| Less: Accounts Payable
Net Working Capital |
0.1m
$1.9m |
0.4m
$4.5m |
Calculate projected net cash flow for this coming year.
