b. What will be the impact on its net investment in working capital in 2012 if R

Question

b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its collection period by five days, its inventory period by six days, and increase its payment period by two days? New Sales Sales/day New COGS COGS/day Estimated AR if reduced by 5 days Old collection period 93.58 New collection period 88.58 New AR estimate 5 Estimated Inventory if conversion period reduced by 6 days COGS/day Old conversion period New conversion period New inventory estimate Estimated AP if payment period increased by 2 days COGS/day Old payment period New payment period New AP estimate 2012 working capital Did the working capital increase or decrease from part a? please I need this done by today as I have to turn it in tomorrow I am not sure that any of my answers are right

Explanation / Answer

follow this Affect on its levels of receivables, inventories,and payments - Increase Affect on net investment in working capital - Increase b) impact on its net investment in working capital -- Decrease

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