If a company's net working capital (NWC) is $5,000 in year 1 and $7,000 in...

80.2K

Verified Solution

Question

Accounting

image

If a company's net working capital (NWC) is $5,000 in year 1 and $7,000 in year 2, what will be the effect of NWC on total cash flows in year 2? A. None of the answers is correct. Total year 2 cash flow will be $7,000 higher than if NWC did not change. B. C. Total year 2 cash flow will be $2,000 higher than if NWC did not change. Total year 2 cash flow will be $2,000 lower than if NWC did not change. D. Total year 2 cash flow will be $7,000 lower than if NWC did not change. O E

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students