Chapter 5 Capital Budgeting
Chapter 5 Capital Budgeting 5-7 2.3 Investment In WC Is A Capital Expenditure Typically, there are timing differences between the accounting measure of earnings (Sales - Cost of Goods Sold) and cash flows. Working Capital (WC) = Inventory+ A/R− A/P. Changes in Working Capital • Inventory: Cost of goods sold includes only the cost of items ...
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