Increased needs for net working capital
Increased needs for net working capital are:
recognized in pro forma balance sheets.
totally absorbed by retained earnings.
typically financed with short-term debt.
ignored due to their great variability.
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the market place is considering a new four-year expansion project that requires an initial fixed asset investment of 28
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increased needs for net working capital arerecognized in pro forma balance sheetstotally absorbed by retained
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