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A firm is considering changing their credit terms. It is estimated that this change would result in sales increasing by $1,600,000. This in turn would cause inventory to increase by $125,000 , accounts
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A firm is considering changing their credit terms. It is estimated that this change would result in sales increasing by $1,600,000. This in turn would cause inventory to increase by $125,000 , accounts receivable to increase by $100,000 , and accounts payable to increase by $90,000 . What is the firm's expected change in net working capital?A) $315,000B) $135,000C) $225,000D) $1,735,000

User Abhishek Dutt
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2 Answers

4 votes
The answer is $135,000
User Rrvasanth
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5.7k points
4 votes

Answer:

The correct answer is

$135,000

Step-by-step explanation:

$125,000 +$100,000 - $90,000 = $135,000

Good luck

User Liotur
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