An increase in inventories of $500 and a decrease in the bank balance of $600 and...

  

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An increase in inventories of $500 and a decrease in the bank balance of $600 and an increase in payables of $1,400 results in: A. A decrease in working capital of $1,500 B. An increase in working capital of $1,500 C. A decrease in working capital of $1,300 D. An increase in working capital of $1,300 The turnover of a company was $4 million and its receivables were 7.5% of turnover. The company wishes to have an allowance of 3% of receivables, which would result in an increase of 25% of the current allowance. What figure would appear in the income statement for bad debts? An increase in inventories of $500 and a decrease in the bank balance of $600 and an increase in payables of $1,400 results in: A. A decrease in working capital of $1,500 B. An increase in working capital of $1,500 C. A decrease in working capital of $1,300 D. An increase in working capital of $1,300 The turnover of a company was $4 million and its receivables were 7.5% of turnover. The company wishes to have an allowance of 3% of receivables, which would result in an increase of 25% of the current allowance. What figure would appear in the income statement for bad debts?

Answer rating: 100% (QA)

The answer is A A decrease in working capital of 1500 The working c... View the full answer