Which one of the following relates to a negative change in net working capital?
A)Increase in the inventory level
B)Sale of net fixed assets
C)Purchase of net fixed assets
D)Increase in current assets and decrease in current liabilities for the period
E)Increase in current liabilities with no change in current assets for the period

Question

Quizplus · Accepted Answer

An increase in current liabilities with no change in current assets for the period leads to a decrease in net working capital, as the company has less available cash to cover its current liabilities.

Which One of the Following Relates to a Negative Change