Which one of the following will increase net working capital? Assume that the current ratio is greater than 1.0.
A) using cash to pay an accounts payable
B) using cash to pay a long-term debt
C) selling inventory at cost
D) collecting an accounts receivable
E) using a long-term loan to buy inventory

Question

Quizplus · Accepted Answer

The Answer of Which one of the following will increase net working capital? Assume that the current ratio is greater than 1.0.
A) using cash to pay an accounts payable
B) using cash to pay a long-term debt
C) selling inventory at cost
D) collecting an accounts receivable
E) using a long-term loan to buy inventory

Which One of the Following Will Increase Net Working Capital