Question: Question 25 A new project will cause accounts payable to increase by $70,000, accounts receivable to increase by $80,000 and inventory to decrease by $10,000.

Question 25

A new project will cause accounts payable to increase by $70,000, accounts receivable to increase by $80,000 and inventory to decrease by $10,000. Which one of the following statements is true?

Select one:

a. The project will decrease the amount of cash provided to customers.

b. Net working capital will decrease.

c. The change in inventory is a use of cash.

d. The project will not affect net working capital.

e. The change in accounts payable is a use of cash.

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