Shannon's Irish Cookware Is Implementing a Project That Will Initially

question 65

Multiple Choice

Shannon's Irish Cookware is implementing a project that will initially increase accounts payable by $5,000, increase inventory by $3,200, and decrease accounts receivable by $1,800.All net working capital will be recouped when the project terminates.What is the cash flow related to the net working capital for the last year of the project?

• A)$500,00
• B)$600
• C)-$3,600
• D)$2,500
• E)$5,600

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Definitions:

Accounts Payable Clerk

An Accounts Payable Clerk is responsible for managing the company's accounts payable records, including processing invoices, verifying financial data, and ensuring timely payments to vendors.

Petty Cash

A small amount of cash on hand that is used for paying small expenses in an organization.

Cash Short And Over

An accounting term that represents the discrepancies between the recorded amount of cash and the actual amount of cash available, indicating either a surplus or a shortfall.

Sales

Revenue generated from the selling of goods or services.