What Will Be the Change in Net Working Capital If

question 13

Multiple Choice

What will be the change in net working capital if you observe the following changes in current assets and current liabilities? (I.) Current assets increase by $170,000.
(II) ) Current liabilities decrease by $60,000.

• A)Increase by $110,000
• B)Increase by $230,000
• C)Decrease by $110,000
• D)Decrease by $230,000 Change in net working capital = (change in current assets - change in current liabilities)
• = 170,000 - (-60,000)

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Definitions:

Ash Columns

Vertical plumes of volcanic ash and gas that are ejected into the atmosphere during an explosive volcanic eruption.

Lava Domes

Rounded, bulbous mounds of viscous lava that are formed by the slow eruption of lava from a volcano.

Lava Fountain

A jet of molten lava that is ejected into the air from a volcanic vent.

Pyroclastic Column

A dense cloud of hot ash, gas, and volcanic matter that rises above a volcano during an explosive eruption.