What is the net effect on a firm's cash flow from changes in net working capital if a new project requires: $30,000 increase in inventory, $10,000 increase in accounts receivable, $35,000 increase in machinery, and a $20,000 increase in accounts payable? Group of answer choices a. cash inflow $5,000 b. cash inflow $55,000 c. cash outflow $10,000 d. cash outflow $20,000
What is the net effect on a firm's cash flow from changes in net working capital if a new project requires: $30,000 increase in inventory, $10,000 increase in accounts receivable, $35,000 increase in machinery, and a $20,000 increase in accounts payable? Group of answer choices a. cash inflow $5,000 b. cash inflow $55,000 c. cash outflow $10,000 d. cash outflow $20,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
What is the net effect on a firm's cash flow from changes in net working capital if a new project requires: $30,000 increase in inventory, $10,000 increase in accounts receivable, $35,000 increase in machinery, and a $20,000 increase in accounts payable?
Group of answer choices
a. cash inflow $5,000
b. cash inflow $55,000
c. cash outflow $10,000
d. cash outflow $20,000
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