Answer:
$253,600
Explanation:
The computation of Initial cash flow for net working capital is shown below:-
Initial cash flow for net working capital = Increase in floor inventory as reduced by increase in debt to supplier + Increase in Account receivables
= $486,000 - 90% + $205,000
= $48,900 + $205,000
= $253,600
So, for computing the Initial cash flow for net working capital we simply applied the above formula.