Which one of the following statements concerning net working capital is correct?

Corporate Finance

Which one of the following statements concerning net working capital is correct?

Net working capital increases when inventory is purchased with cash.
Net working capital must be a positive value.
Total assets must increase if net working capital increases.
A decrease in the cash balance also decreases net working capital.

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Which one of the following statements concerning net working capital is correct? Answer:A decrease in the cash balance also decreases net working capital.

Tags: Financial Statements, Taxes, and Cash Flow

Note

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