For Project Z, Year 5 Inventories Increase by $6,000; Accounts

Multiple Choice

For project Z, year 5 inventories increase by $6,000; accounts receivable by $4,000; and accounts payable by $3,000. Calculate the increase or decrease in working capital for year 5.

A) Increases by $5,000
B) Decreases by $1,000
C) Increases by $7,000
D) Decreases by $7,000