A fiRm Is Considering a Project Which Would Increase Accounts

question 312

Multiple Choice

A firm is considering a project which would increase accounts receivable by $10,000, accounts payable by $35,000, and inventory by $30,001. Which of the following is true?

• A) Net working capital has increased.
• B) Sales will increase.
• C) Payments to creditors will slow.
• D) Net working capital has decreased.
• E) This is a net source of cash.