Asked by
Grace Beddows
on Nov 08, 2024Verified
Which one of the following will increase net working capital?
A) A decrease in cash.
B) An increase in accounts payable.
C) An increase in depreciation.
D) A profitable sale of inventory.
E) The write-off of a bad debt.
Net Working Capital
The gap between a firm's existing assets and its short-term obligations, showcasing its liquidity and ability to run efficiently in the near term.
Accounts Payable
The amount of money owed by a business to its suppliers or creditors for goods and services bought on credit.
- Evaluate the factors that influence operating cash flow, net working capital, and earnings per share.
Verified Answer
TB
Learning Objectives
- Evaluate the factors that influence operating cash flow, net working capital, and earnings per share.
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