Improved management of working capital also will result in


In contrast, an optimistic scenario for Eastland Industries for Year 3 suggests that a sales breakout year will lead to operating efficiencies resulting in net income projections of $100,000. Improved management of working capital also will result in a net working capital increase of only $30,000. Estimate the net cash build or burn after a $50,000 debt repayment under both scenarios. Comment on your findings.

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Finance Basics: Improved management of working capital also will result in
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