Question: A new project will cause accounts payable to increase by $35,000, accounts receivable to increase by $30,000 and inventory to decrease by $5,000. Which one
A new project will cause accounts payable to increase by $35,000, accounts receivable to increase by $30,000 and inventory to decrease by $5,000. Which one of the following statements is true?
Select one:
a. The project will decrease the amount of cash provided to customers.
b. The project will not affect net working capital.
c. Net working capital will decrease.
d. The change in accounts payable is a use of cash.
e. The change in inventory is a use of cash.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
