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

---

Definitions:

Negative Reinforcing

A behavior modification process where the removal of an unpleasant stimulus strengthens a behavior.

Negative Reinforcer

A stimulus that, when removed after a behavior occurs, increases the likelihood of that behavior being repeated.

Reduction In Tension

A process or action that decreases stress or anxiety levels in individuals or groups.

Oral Needs

Psychological or physical requirements for satisfaction received through the mouth, such as eating, drinking, or the need for verbal expression.