Which One of the Following Will Increase Net Working Capital

question 83

Multiple Choice

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 a trade payables.
• B)Using cash to pay a long-term debt.
• C)Selling inventory at cost.
• D)Collecting a trade receivables.
• E)Using a long-term loan to buy inventory.

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