A Firm Starts Its Year with Positive Net Working Capital

question 40

Multiple Choice

A firm starts its year with positive net working capital.During the year,the firm acquires more short-term debt than it does short-term assets.This means that

• A)the ending net working capital might be positive,negative,or equal to zero.
• B)both accounts receivable and inventory decreased during the year.
• C)the beginning current assets were less than the beginning current liabilities.
• D)accounts payable increased and inventory decreased during the year.
• E)the ending net working capital will be negative.

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