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JRS firm is considering a new project that will cause accounts payable to increase by $70,000, accounts receivable to increase by $80,000 and inventory to
JRS firm is considering a new project that 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?
A) The change in inventory is a use of cash.
B) Net working capital will decrease.
C) The project will not affect net working capital.
D) The change in accounts payable is a use of cash.
E) The project will decrease the amount of cash provided to customers.
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