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MC Question 13
A company has annual credit sales of $27 million and related cost of sales of $15 million. The company has the following targets for the next year:
Assume there are 360 days in the year.
| Trade receivables days | 50 days |
| Inventory days | 60 days |
| Trade payables | 45 days |
What is the net investment in working capital required for the next year?
A. $8,125,000
B. $4,375,000
C. $2,875,000
D. $6,375,000