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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