A Corporation Is Considering Expanding Operations to Meet Growing Demand

question 77

Multiple Choice

A corporation is considering expanding operations to meet growing demand. With the capital expansion the current accounts are expected to change. Management expects cash to increase by$10,000, accounts receivable by $20,000, and inventories by $30,000. At the same time accounts payable will increase by $40,000, accruals by $30,000, and long-term debt by $80,000. The change in net working capital is __________.

• A) an increase of $80,000
• B) a decrease of $10,000
• C) a decrease of $90,000
• D) an increase of $10,000

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Definitions:

Confidence Interval

A confidence interval is a range of values, derived from sample data, that is likely to contain the true value of an unknown population parameter with a specified level of confidence.

Sample Size

The number of participants, observations, or data points collected in a study, important for ensuring the statistical validity and reliability of the research findings.

Larger Sample Size

A methodological strategy in research that involves increasing the number of participants to enhance the reliability and validity of the study's outcomes.

Cluster Sampling

A method of sampling in which the population is segmented into different groups, and from these groups, a few are randomly chosen for analysis.