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As CFO your company is considering an expansion project

Finance

As CFO your company is considering an expansion project. The capital expansion will result in a $8,000 increase in cash, a $11,000 increase in accounts receivables, and a $5,000 decrease in inventory. At the same time, accounts payable will increase by $13,000, accruals will increase by $9,000, and long-term debt will increase by $10,000. What is the change in net working capital?

answer choices:

A decrease of $18,000

An increase of $2,000

An increase of $8,000

A decrease of $8,000

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rate positively .

Add increase in cash 8000
Add increase in accounts receivables 11,000
Less decrease in inventory 5,000
Less accounts payable 13,000
Less accruals will increase 9000
     
  Net working capital -8,000
     
  Ans = A decrease of $8,000