Answer:
The question is is properly formatted ,find below question:
A&D inc is projecting the following increases and decreases over the next year.
Inventory - increases by $3 million
accounts receivable - decrease by $2 million
Accrued payroll taxes - increase by $1 million
fixing assets - increase by $5 million
long term debt - increase by $4 million
revenues - increase by $6 million
The correct option is D,not change
Explanation:
The change in net working capital=change in current assets - change n current liabilities
change in current assets=increase in inventory-decrease in accounts receivable=$3 m-$2m=$1m
Change in current liabilities=increase in payroll taxes=$1m
Change in net working capital=$1m-$1m=$0
The correct option is d,not change since the change in net working capital expected is $0
Option C is wrong because that is change in both current assets and current liabilities respectively
