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:

Sociohistorical Context

Refers to how historical and societal factors influence and shape behaviors, events, and perceptions.

Cultural Heritage

The tradition of material possessions and non-material characteristics transmitted through generations in a group or society.

Behavioural Economics

A field of study that combines insights from psychology and economics to explore how people make economic decisions in real-world situations.

Emotional Influences

The effect of emotions on cognitive processes, behaviors, or decision-making.