What Is the Net Effect on a Firm's Working Capital

question 96

Multiple Choice

What is the net effect on a firm's working capital if a new project requires: $30,000 increase in inventory, $10,000 increase in accounts receivable, $25,000 increase in machinery, and a $20,000 increase in accounts payable?

• A)- $5,000
• B)+ $10,000
• C)+ $20,000
• D)+ $45,000

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Definitions:

Energized

Refers to a state where an electrical component or circuit has power supplied to it and is operational.

Start Button

A control interface, typically a button, used to initiate a process or operation in machinery, software applications, or devices.

Preset Count

A predetermined value used in counting applications to trigger an event when a counter reaches this value.

Input

Data or signals received by a system, device, or computational process for processing or manipulation.