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

question 80

Multiple Choice

What is the effect on a firm's net working capital if a new project requires a $30,000 increase in inventory,a $10,000 increase in accounts receivable,a $35,000 expenditure on 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:

Workforce Diversity

The inclusion of individuals with a wide range of characteristics and traits, such as age, gender, ethnicity, and background, within an organization.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, typically aiming at solving a problem or achieving a goal.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, typically driven by international trade and investment and aided by information technology.

Multinational Businesses

Companies that operate, have offices, or produce goods and services in more than one country.