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

question 12

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,$35,000 increase in machinery,and a $20,000 increase in accounts payable?

• A) -$5,000
• B) +$10,000
• C) +$20,000
• D) +$55,000