medium · Corporate Credit Analysis fsa

A sponsor-backed manufacturer expects to grow revenue from $2,000 million to $2,500 million in the next fiscal year. The firm operates with a DSO of 60 days, DIO of 90 days, and DPO of 45 days. If the COGS margin is constant at 70%, what is the projected cash absorption (use of cash) from non-cash working capital? Assume a 365-day year.

1. 82.2 million
2. 143.8 million
3. 168.5 million
4. 125.7 million

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