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Kay's Quilts Is Considering a Project That Will Reduce Inventory

Question 68

Multiple Choice

Kay's Quilts is considering a project that will reduce inventory by $38,000,increase accounts payable by $55,000,and increase accounts receivables by 9 percent.Accounts receivable is currently $78,000.What is the cash flow at Time 0 for net working capital?


A) $100,020
B) $85,900
C) $99,000
D) $9,980
E) $8,120

Correct Answer:

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