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8 August, 16:45

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

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  1. 8 August, 16:46
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    The answer is $135,000
  2. 8 August, 17:09
    0
    The correct answer is

    $135,000

    Explanation:

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

    Good luck
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