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1. ABC Inc. is reviewing a proposal for a new project. The purchase price of assets needed for the project is estimated to be $120,000.

1. ABC Inc. is reviewing a proposal for a new project. The purchase price of assets needed for the project is estimated to be $120,000. The firm expects the following increases in the listed accounts:

Accounts Receivable: $12,000

Accounts Payable: $16,000

Inventories: $3,000

How much net working capital will the firm need?

$1,000
$9,000
$10,000
$12,000
None of the above

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