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

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Definitions:

Race/ethnicity

Categories that distinguish people in terms of physical characteristics, ancestry, historical affiliations, or shared culture.

Remarry

The act of getting married again following a divorce or the death of one's spouse.

Custodial parent

The parent who is granted the primary right to determine the child's upbringing, including living arrangements and day-to-day care, in the event of a divorce or separation.

Stepparent

A person married to one's parent after a divorce or death of the biological parent, not biologically related to the child.