A new project is expected to have the following effects on the financial statements of a firm. The effect of a reduction in accounts payable should be included in the net working capital requirements for the project.

Accounts Payable

Obligations of a company to pay off short-term debts to its suppliers or creditors.

Net Working Capital

This is the difference between a company's current assets and its current liabilities, indicating its short-term financial health and ability to cover short-term obligations.