A firm is considering a project which would increase accounts receivable by $10,000, accounts payable by $35,000, and inventory by $30,001. Which of the following is true?

A) Net working capital has increased.
B) Sales will increase.
C) Payments to creditors will slow.
D) Net working capital has decreased.
E) This is a net source of cash.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the short-term financial health of the business.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit, typically due within a short period of time.