Jim's Hardware Is Adding a New Product Line to Its

question 78

Multiple Choice

Jim's Hardware is adding a new product line to its sales lineup.Initially,the firm will stock $41,000 of the new inventory,which will be purchased on 30 days' credit from a supplier.The firm will also invest $6,000 in accounts receivable and $4,000 in equipment.What amount should be included in the initial project costs for net working capital?

• A)-$41,000
• B)-$37,000
• C)-$10,000
• D)-$6,000
• E)-$2,000

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Definitions:

Lithosphere

The rigid outer layer of the Earth, consisting of the crust and the upper mantle, involved in plate tectonics and continental drift.

Biome

A large community of plants and animals that occupies a distinct region defined by its climate, flora, and fauna.

Biotic Potential

The maximum reproductive capacity of an organism under optimum environmental conditions.

Environmental Resistance

Total of factors in the environment that limit the numerical increase of a population in a particular region.