Identifying changes in net cash flows


Problem: In identifying changes in net cash flows, which of the following would have the least (if any) effect on net working capitol?

a) Making cash purchases of land for a new baseball manufacturing plant

b) Allowing your sales staff to make more sales on credit

c) Doubling the size of inventory to accommodate new product lines

d) Converting a manufacturing process from manual labour to automated production

e) using long-term bank credit to reduce payables

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Finance Basics: Identifying changes in net cash flows
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