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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 $20,000, accounts receivable by $40,000, and inventories by $60,000. At the same time accounts payable will increase by $50,000, accruals by $10,000, and long-term debt by $100,000. The change in net working capital is .
A) an increase of $120,000.
B) a decrease of $40,000.
C) a decrease of $120,000.
D) an increase of $60,000.
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A corporation is considering expanding operations to meet growing demand. With the capital expansion...
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