Considering expanding operations to meet growing demand

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Reference no: EM13917444

A corporation is considering expanding operations to meet growing demand. With the capital expansion, the current accounts are expected to change. Management expects cash to increase by $20,000, accounts receivable by $40,000, and inventories by $60,000. At the same time accounts payable will increase by $50,000, ac- cruals by $10,000, and long-term debt by $100,000. The change in net working capital is a. a decrease of $40,000. b. a decrease of $120,000. c. an increase of $120,000. d. an increase of $60,000.

Reference no: EM13917444

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