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:

Introduction

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Growth

The increase in size, value, or importance of something over time.

Decline

A decrease or reduction in the value, quantity, or quality of something over time.

Entire Economy

Refers to the total system of production and exchange encompassing all sectors and activities within a geographical area or country.