Which of the Following Will Cause an Increase in Net

question 62

Multiple Choice

Which of the following will cause an increase in net working capital, other things held constant?

• A) A cash dividend is declared and paid.
• B) Merchandise is sold at a profit, but the sale is on credit.
• C) Long-term bonds are retired with the proceeds of a preferred stock issue.
• D) Missing inventory is written off against retained earnings.
• E) Cash is used to buy marketable securities.