When a corporation engages in a corporate restructuring involving a $25,000,000 write-off of inventory and $35,000,000 in severance packages, which effect will occur immediately on their financials?

When a corporation undergoes a corporate restructuring that involves significant write-offs and severance costs, the immediate impact on its financials can be profound. In this case, the severance packages, totaling $35,000,000, will be recorded as liabilities on the balance sheet. This increase reflects the company's obligation to pay these severance benefits, thereby raising current liabilities by that same amount.

The write-off of inventory has a different implication; it affects assets on the balance sheet by reducing them, which can diminish the company's net worth. The write-off doesn't directly create a liability but rather reduces the asset value.

The overall effect is that while inventory decreases, the cash outflows from severance payments will create an immediate increase in the current liabilities, reflecting the corporation's short-term obligations. Hence, the option indicating an increase in current liabilities aligns with the nature of the financial impacts of the restructuring.

Meanwhile, the other options do not accurately reflect the financial consequences described in the question. For instance, net worth will not increase and will likely decrease due to the write-off and severance packages. Working capital is expected to change due to the increase in current liabilities and the decrease in assets. Lastly, while cash flow will be affected, it directly