XYZ,Inc.has developed a project which results in additional accounts receivable of $400,000,additional inventory of $180,000,and additional accounts payable of $70,000.What is the additional investment in net working capital?

Question

Quizplus · Accepted Answer

The additional investment in net working capital can be calculated as follows:
Additional investment in net working capital = Additional accounts receivable + Additional inventory - Additional accounts payable
= $400,000 + $180,000 - $70,000
= $510,000
Therefore, the best choice is B.

XYZ,IncHas Developed a Project Which Results in Additional Accounts Receivable