Which One of the Following Is a Situation Where a New

Multiple Choice

Which one of the following is a situation where a new project will require a cash investment in net working capital?

A) Inventory levels will be reduced when the project is introduced.
B) All sales related to the project will be cash sales to a subsidiary.
C) The project will increase inventory more than accounts payable.
D) The project will require additional inventory which will be financed by a supplier.