14. A firm is considering a project which would increase accounts receivable by $10,000, accounts payable...
14. A firm is considering a project which would increase accounts receivable by $10,000, accounts payable by $55,000, and inventory by $30,000. Which of the following is true?
| A. |
Net working capital has increased. |
|
| B. |
Sales will increase. |
|
| C. |
Payments to creditors will slow. |
|
| D. |
Net working capital has decreased. |
|
| E. |
This is a net use of cash. |
Homework Answers
14)
Investment in net working capital:
= $10,000 + $30,000 - $55,000
= -$15,000
Hence, correct option is D.
Add Answer to:
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