A firm is considering changing their credit terms.It is estimated that this change would result in sales increasing by $1,000,000.This in turn would cause inventory to increase by $150,000,accounts receivable to increase by $100,000,and accounts payable to increase by $75,000.What is the firm's expected change in net working capital?
A) $1,175,000
B) $325,000
C) $250,000
D) $175,000
E) $150,000
Correct Answer:
Verified
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