Which of the following increases net working capital?
A) an increase in plant financed by issuing bonds
B) an increase in bonds and a decrease in equity
C) an increase in cash and a decrease in accounts receivable
D) an increase in preferred stock and a decrease in accounts payable

Question

​Which of the following increases net working capital?
A) ​an increase in plant financed by issuing bonds
B) ​an increase in bonds and a decrease in equity
C) ​an increase in cash and a decrease in accounts receivable
D) an increase in preferred stock and a decrease in accounts payable​

Quizplus · Accepted Answer

An increase in preferred stock provides more long-term financing, while a decrease in accounts payable reduces current liabilities, both of which increase net working capital.

​Which of the Following Increases Net Working Capital

Which of the Following Increases Net Working Capital