Pedro's Farms Has $137,000 in Net Working Capital

question 91

Multiple Choice

Pedro's Farms has $137,000 in net working capital. Which one of the following actions will increase that amount?

• A) A decrease in the amount owed to suppliers.
• B) A credit sale of inventory at cost.
• C) The collection of an account receivable.
• D) A cash sale of inventory for an amount less than cost.
• E) The purchase of inventory on credit.

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Definitions:

Corrective Action

Corrective action is a process aimed at identifying, addressing, and rectifying issues, errors, or deviations from standards to prevent recurrence.

Growth Phase

A period in the development of entities such as organizations, economies, or individual careers characterized by expansion and increased activity.

Future Benefits

Prospective advantages or positive outcomes that are expected to occur as a result of current actions or investments.

Level 5 Leadership

The paradoxical combination of personal humility and professional will that makes a potent formula for the highest level of leadership success. Personal humility refers to consideration and service to others; professional will refers to conviction and fierce resolve. Together, these define the caring leader who is able to catapult a group or an organization from merely good to truly great. See caring leadership.