A Project Under Consideration by Bizet Co

question 47

Multiple Choice

A project under consideration by Bizet Co.will require the purchase of machinery for $50,000 and additional inventory for $15,000.Accounts receivable will increase by $12,000 and accounts payable by $14,000.Liability insurance will increase by $2,500 per year and utilities expense by $1,500 per year.What is the investment in working capital required by this project?

• A)$77,000
• B)$41,000
• C)$13,000
• D)$4,000

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Definitions:

Internal Supply Chain

The series of processes within a company that contribute to the production and delivery of a product, focusing on the internal flow of materials and goods.

Receiving

The process of accepting delivery of goods or materials, inspecting them, and documenting their arrival.

Receiving

The process of accepting delivery of goods or materials into a facility, checking them for accuracy against the purchase order, and inspecting for damage or defects.

Inspection

The process of examining materials, products, or systems to ensure they meet certain standards, regulations, or customer expectations.