Kay's Quilts Is Considering a Project That Will Require Additional

question 60

Multiple Choice

Kay's Quilts is considering a project that will require additional inventory of $138,000,increase accounts payable by $55,000 and increase accounts receivables by 10 percent.Accounts receivable is currently $80,000.What is the net working capital requirement?

• A)$201,000
• B)$91,000
• C)$99,000
• D)$136,000
• E)$181,000

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Definitions:

Predatory Pricing

A competitive strategy in which a business sets extremely low prices to eliminate competition and monopolize the market.

Bait and Switch

A deceptive marketing strategy where a customer is lured by the advertisement of a low-priced item but then is encouraged to buy a more expensive one.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," indicating that the buyer assumes the risk for the quality of goods purchased, unless protected by warranty.

Former Price Comparisons

A method of evaluating the price history of a product or service to assess its current value.