What Is the Overall Change in Net Working Capital Resulting

question 41

Essay

What is the overall change in net working capital resulting from the following changes? $300 increase in inventories; $150 increase in accounts payable; $120 decrease in accounts receivable; $60 decrease in other current assets; $150 decrease in other current liabilities.

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Definitions:

Labor

The engagement of human physical strength and intellectual power in producing goods and offering services.

Additional Revenue

The increase in total revenue that results from selling an additional unit of a product or service.

Profit-Maximizing Output

The level of production at which a company achieves the highest possible profit margin, given its costs and market demand.

Wage Rate

The amount of money paid to an employee per unit of time, which can be hourly, daily, or annually.