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

Multiple Choice

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

A) Increases by $6,000
B) Decreases by $4,000
C) Increases by $7,000
D) Decreases by $7,000