You Are Considering Adding a Microbrewery onto One of Your

question 31

Multiple Choice

You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inventory of $8700, an increase in accounts payables of $2300, and an increase in property, plant, and equipment of $48,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is ________.

• A) $54,400
• B) $11,000
• C) $7680
• D) $6400

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Definitions:

Specialized Mode

A specific way of operation or function that is designed for a particular purpose or task, often seen in technology or transportation sectors.

Industries

Sectors of the economy made up of manufacturing, production, or services that share common characteristics, skills, technologies, and markets.

Inventory Carrying

The costs associated with storing unsold goods, including finance, storage, and risk costs.

Obsolescence

The process of becoming outdated or no longer used, often due to advancements in technology or changes in consumer preferences.