You Are Considering Adding a Microbrewery on to One of Your

question 55

Multiple Choice

You are considering adding a microbrewery on to one of your firm's existing restaurants.This will entail an increase in inventory of $8000,an increase in Accounts payable of $2500,and an increase in property,plant,and equipment of $40,000.All other accounts will remain unchanged.The change in net working capital resulting from the addition of the microbrewery is:

• A)$45,500
• B)$10,500
• C)$6500
• D)$5500

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Definitions:

Rack And Pinion

A type of linear actuator that involves a circular gear (the pinion) engaging a linear gear (the rack) to create linear motion from rotational motion.

Fifth Wheel

A pivoting platform attached to a tractor or truck chassis that provides a coupling point for a semi-trailer.

Axle

A rod or bar on which wheels turn or the housing that supports wheel assemblies. Also used to describe the shaft that transmits drive torque to the drive wheels.

Drivelines

Components, including the driveshaft, axles, CV joints, and differential, that transmit power from the engine to the wheels of a vehicle.