A firm is considering a project which would increase accounts receivable by $10,000, accounts payable by $35,000, and inventory by $30,001. Which of the following is true?
A) Net working capital has increased.
B) Sales will increase.
C) Payments to creditors will slow.
D) Net working capital has decreased.
E) This is a net source of cash.
Correct Answer:
Verified
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