For Project a in Year 2, Inventories Increase by $12,000

question 52

Multiple Choice

For project A in year 2, inventories increase by $12,000 and accounts payable increase 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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Definitions:

Currency Fluctuation

Variations in the value of one currency compared to another, affecting international trade and investments.

International Organization

An entity operating across multiple countries, focusing on global or transnational issues, either for profit or as a non-profit.

Participating Countries

Nations that are involved or engaged in an international event, project, agreement, or any collaborative effort.

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.