Author Question: A corporation is considering expanding operations to meet growing demand. With the capital expansion ... (Read 84 times)

sarasara · **on:** Jul 11, 2018

A corporation is considering expanding operations to meet growing demand. With the capital expansion the current accounts are expected to change.

Management expects cash to increase by 10,000, accounts receivable by 20,000, and inventories by 30,000. At the same time accounts payable will increase by 40,000, accruals by 30,000, and long-term debt by 80,000. The change in net working capital is ________.
A) an increase of 10,000
B) a decrease of 10,000
C) a decrease of 90,000
D) an increase of 80,000

Question 2

Money markets involve the trading of securities with maturities of one year or less.

Indicate whether the statement is true or false