What Is the Effect on Net Working Capital If the Corporation

question 56

Multiple Choice

What is the effect on net working capital if the corporation decides to increase their investment in inventory and pay for it with cash?

• A) Increase in NWC.
• B) Decrease in NWC.
• C) Depends on the amount of the investment.
• D) No effect.
• E) Depends on the amount of cash.

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