A Project Is Expected to Increase Inventory by $17,000,increase Accounts

question 40

Multiple Choice

A project is expected to increase inventory by $17,000,increase accounts payable by $10,000,and decrease accounts receivable by $1,000.What is the project's cash flow from net working capital at time zero?

• A) −$8,000
• B) $8,000
• C) −$6,000
• D) $6,000

---

Definitions:

Other Receivable

Amounts owed to the company from parties other than customers, typically within a short time frame.

Uncollectible Receivables

Money owed to a company that is unlikely to be paid by the debtor, leading to its classification as a bad debt.

Doubtful Accounts Expense

An estimated expense recognized in the accounting period for accounts receivable that may not be collectible, also known as a provision for bad debts.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which does not necessarily coincide with the calendar year.