What is the net effect on a firm's working capital if a new project requires: $30,000...
What is the net effect on a firm's working capital if a new project requires: $30,000 increase in inventory, $10,000 increase in accounts receivable, $25,000 increase in machinery, and a $20,000 increase in accounts payable?
+ $20,000
+ $45,000
+ $10,000
- $5,000
Homework Answers
working capital=Current assets-current liabilities
Hence increase in working capital=increase in inventory+increase in Accounts receivable-increase in accounts payable
=30,000+10,000-20,000
=$20,000 increase.
Hence the correct option is :
+ $20,000
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What is the net effect on a firm's working capital if a new
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