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Wilson Electric Company, a manufacturer of various types of electrical equipment, is examining its working...

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Accounting

Wilson Electric Company, a manufacturer of various types of electrical equipment, is examining its working capital investment policy for next year. Projected fixed assets and current liabilities are $16 million and $11 million, respectively. Sales and EBIT are partially a function of the companys investment in working capitalparticularly its investment in inventories and receivables. Wilson is considering the following three different working capital investment policies: Investment in Projected Sales EBIT Working Capital Current Assets (in (in Millions (in Millions Investment Policy Millions of Dollars) of Dollars) of Dollars) Aggressive (small investment $22 $54 $5.4 in current assets) Moderate (moderate investment in 31 60 6.0 current a

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