A Project That Increased Sales Was Accompanied by a $50,000

question 83

Multiple Choice

A project that increased sales was accompanied by a $50,000 increase in inventory,a $20,000 increase in accounts receivable,and a $25,000 increase in accounts payable.Assuming these amounts remain constant,by how much has net working capital increased?

• A) $5,000
• B) $25,000
• C) $30,000
• D) $45,000

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Definitions:

Controlling Interest

An ownership interest in a business entity in terms of voting rights, sufficient to control the policies and management of the entity.

Fiduciary Duty

An obligation to act in the best interest of another party, for example, a company's management acting in the best interests of its shareholders.

Management

The process of dealing with or controlling things or people, often within an organization or a project, including planning, organizing, leading, and controlling resources.

Subsidiary

A company that is controlled by another company, known as the parent company, through ownership of a majority of its voting stock.