For Project a in Year 2, Inventories Increase by $12,000

question 52

Multiple Choice

For project A in year 2, inventories increase by $12,000 and accounts payable increase by $2,000. Accounts receivable remain the same. Calculate the increase or decrease in net working capital for year 2.

• A)Decreases by $14,000
• B)Increases by $14,000
• C)Decreases by $10,000
• D)Increases by $10,000

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