Working capital is calculated as the current assets minus the current liabilities. The new plant is a noncurrent asset and the 20-year mortgage is a noncurrent liability. Therefore, working capital will be unchanged as a result of this transaction.
Working capital is calculated as the current assets minus the current liabilities. The cash payment of taxes payable will decrease both current assets and current liabilities by the same amount. Therefore, working capital will be unchanged as a result of this transaction.
Working capital is calculated as the current assets minus the current liabilities. The collection of an account receivables will increase both current assets and current liabilities by the same amount. Therefore, working capital will be unchanged as a result of this transaction.
Working capital is calculated as the current assets minus the current liabilities. The refinancing of a short-term note with a 2-year note will cause the reduction of current liabilities without a corresponding reduction in current assets. This will cause working capital to increase.
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