For Project a in Year 2,inventories Increase by $12,000 and Accounts

question 49

Multiple Choice

For project A in year 2,inventories increase by $12,000 and accounts payable increases by $2,000.Accounts receivable remain the same.Calculate the increase or decrease in net working capital for year 2.

• A)decreases by $14,000
• B)increases by $14,000
• C)decreases by $10,000
• D)increases by $10,000

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