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

question 40

Multiple Choice

For project A in year-2, inventories increase by $12,000 and accounts payable by $2,000. 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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Definitions:

Alignment

The arrangement in which strategy, culture, and organizational structure are synchronized to achieve business objectives effectively.

People, Processes, and Technologies

The three primary components essential for successful organizational management and execution of strategies.

Collaborative Relationship

A partnership or arrangement in which two or more parties work together to achieve common goals or complete specific tasks.

Inventory System

A set of hardware and software tools used to track goods throughout an inventory's lifecycle, from procurement to sales.