A firm starts its year with a positive net working capital.During the year,the firm acquires more short-term debt than it does short-term assets.This means that:
A)the ending net working capital will be negative.
B)both accounts receivable and inventory decreased during the year.
C)the beginning current assets were less than the beginning current liabilities.
D)trade payables increased and inventory decreased during the year.
E)the ending net working capital can be positive,negative,or equal to zero.

Question

Quizplus · Accepted Answer

The ending net working capital can be positive, negative, or zero depending on the initial amount and the net change in short-term assets and liabilities.

A Firm Starts Its Year with a Positive Net Working