Acorporation is considering expanding operations to meet growing demand. with the capital expansion the current accounts are expected to change. management expects cash to increase by $10,000, accounts receivable by $20,000, and inventories by $30,000. at the same time accounts payable will increase by $40,000, accruals by $30,000, and longminusterm debt by $80,000. the change in net working capital is

- $ 10,000

Explanation:

Given:

Increase in cash = $ 10,000

Increase in accounts receivable = $20,000

Increase in inventories = $30,000

Increase in accounts payable = $40,000

Increase in accruals = $30,000

Increase in longminusterm debt = $80,000

now, the net increase in capital = Increase in cash + Increase in accounts receivable + Increase in inventories

or

the net increase in capital =  $ 10,000 + $20,000 + $30,000 = $ 60,000

also, the net decrease in the capital = Increase in accounts payable + Increase in accruals

or

the net decrease in the capital =  $40,000 + $30,000 = $ 70,000

thus,

the change in working capital = the net increase in capital - the net decrease in the capital

or

the change in working capital =  $ 60,000 - $ 70,000 = - $ 10,000

answera public company has access to more capital;