Which of the following actions will cause a firm's net working capital to increase?
A) The firm uses more trade credit.
B) The firm increases its inventory in anticipation of seasonal sales.
C) The firm pays off a short-term bank loan with cash.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

Increasing inventory in anticipation of seasonal sales increases current assets, thus increasing net working capital.

Which of the Following Actions Will Cause a Firm's Net