Jeff's Stereo Sound is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing the ﬂoor inventory by $150,000 and increasing its debt to
Suppliers by 50% of that amount. The company will also spend $200,000 for a building contractor
To expand the size of the showroom. As part of the expansion plan, the company will be offering
Credit to its customers and thus expects accounts receivable to rise by $25,000. For the project
Analysis, what amount should be used as the initial cash ﬂow for net working capital?

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The Answer of Jeff's Stereo Sound is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing the ﬂoor inventory by $150,000 and increasing its debt to
Suppliers by 50% of that amount. The company will also spend $200,000 for a building contractor
To expand the size of the showroom. As part of the expansion plan, the company will be offering
Credit to its customers and thus expects accounts receivable to rise by $25,000. For the project
Analysis, what amount should be used as the initial cash ﬂow for net working capital?

Jeff's Stereo Sound Is Expanding Its Product Offerings to Reach