Ski World Is Considering a New Product Line Which Will

Multiple Choice

Ski World is considering a new product line which will require additional inventory costing $146,000. Accounts payable will increase by $87,000 as suppliers are willing to finance a portion of these purchases. Accounts receivable are currently $80,000 and are expected to increase by 20% if this project is accepted. What is the initial net working capital requirement for the new product line?

A) $43,000
B) $75,000
C) $108,000
D) $162,000
E) $249,000