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
B
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When long-term investments in bonds are sold before their maturity date, the seller deducts any accrued interest since the last interest payment date from the selling price
a. True b. False Indicate whether the statement is true or false
When, at the time of contracting, the goods are in the hands of a third-party bailee and are covered by a document of title, the risk passes to the buyer when he or she:
A. indulges in a breach of contract. B. receives the document of title. C. acknowledges the third-party bailee's right to possession. D. takes possession of the goods.
Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Myrtle Laurel TotalSales$560,000 $336,000 $896,000Variable Costs 176,000 174,000 350,000Contribution Margin 384,000 162,000 546,000Fixed Costs (allocated) 284,375 170,625 455,000Profit Margin$99,625 $(8,625) $91,000What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable?
A. $384,000 profit B. $99,625 profit C. $91,000 profit D. $71,000 loss
The income from continuing operations helps investors make predictions about the company's past performance
Indicate whether the statement is true or false