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For Project a in Year-2, Inventories Increase by $12,000 and Accounts

Question 40

Multiple Choice

For project A in year-2, inventories increase by $12,000 and accounts payable by $2,000. Calculate the increase or decrease in net working capital for year-2.


A) Decreases by $14,000
B) Increases by $14,000
C) Decreases by $10,000
D) Increases by $10,000

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