A Firm Is Considering Changing Their Credit Terms

Multiple Choice

A firm is considering changing their credit terms.It is estimated that this change would result in sales increasing by $1,000,000.This in turn would cause inventory to increase by $150,000,accounts receivable to increase by $100,000,and accounts payable to increase by $75,000.What is the firm's expected change in net working capital?

A) $1,175,000
B) $325,000
C) $250,000
D) $175,000
E) $150,000