The only capital investment required for a small project is investment in inventory. The operating cash flow this year was $10,000, and inventory increased from $4,000 to $5,000. What was the cash flow from the project?

Cash flow can be defined as the amount of cash that is being transferred or that flows into and out of a business which may either leads to increase or decrease in the amount of money a business or individual has.

Cash flow = profit − increase in inventory =

$4,000 - $5,000 = $1000

Therefore

$10,000 − $1,000 = $9,000

Therefore the Cash flow from the project is $9,000

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topeadeniran2 topeadeniran2 · Answer 2 · 2021-11-25T17:27:29+01:00

The cash flow from the project will be $9000.

Cash flow from the project simply means the cash flow that's generated. It can be gotten by using the formula:

Cash flow = Profit - Increased working capital.

Therefore, cash flow will be:

Cash flow = Profit - Increased working capital.

Cash flow = $10000 - ($5000 - $4000)

Cash flow = $10000 - $1000

Cash flow = $9000

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