Example
:
Click here to see the source of data
| Starworld
Group |
End of Year |
| |
2020 |
2021 |
2022 |
| Accounts
Receivable |
232 |
278 |
362 |
| Inventory |
97 |
116 |
151 |
| Prepaid expenses |
35 |
20 |
55 |
| Total |
364 |
414 |
568 |
| Accounts
Payable |
116 |
139 |
181 |
| Accruals |
36 |
45 |
55 |
| Total |
152 |
184 |
236 |
| WCR
(*) |
+
212 |
+
230 |
+
332 |
|
+
(*) As the WCR
is positive, that means a Net Requirement
of funds.
Variation
of WCR :
| Starworld
Group |
2021 |
2022 |
| Accounts
Receivable |
46 |
84 |
| Inventory |
19 |
35 |
| Prepaid expenses |
-15 |
35 |
| Total |
50 |
154 |
| Accounts
Payable |
23 |
42 |
| Accruals |
9 |
10 |
| Total |
32 |
52 |
| Variation
of WCR (*) |
+
18 |
+
102 |
|
(*) As the variation
of WCR is positive, that me ans a Net Requirement
of funds : 18 in 2014 and 102 in 2015.
| |
2021 |
2022 |
| |
sources |
uses |
Sources |
Uses |
Accounts Receivable |
- |
46 |
- |
84 |
Inventory |
- |
19 |
- |
35 |
Prepaid expenses |
15 |
- |
- |
35 |
Accounts Payable |
23 |
- |
42 |
- |
Accruals |
9 |
- |
10 |
- |
| |
47 |
65 |
52 |
154 |
Net Requirement of Funds |
- |
18 |
- |
102 |
Sources :
Understanding
Financial Statements, 1999,
Marc Bertonèche, Ph. D. in Finance
from the Northwestern University, Professor
at the Bordeaux University and at Sciences-PO
Paris, Visiting Professor at Harvard Business
School and Oxford University.
(c) Corporate
Finance Course, Bernard Jaquier, Professor
in Economics & Finance, Lausanne, Switzerland, 2023
