What will be its net investment in working capital


Robinson expects its 2012 sales and cost of goods to grow by 5 percent over their 2011 level

A What will be the affect onits levels of receivables, inventories, and payment if the components of its cash conversion cycle remain at their 2011 levels? What will be its net investment in working capital?

B. What will be the impact on its net investment in working captial 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?

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Accounting Basics: What will be its net investment in working capital
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