Which one of the following statements concerning net working capital is correct? 1. An increase in net
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Question:
1. An increase in net working capital must also increase current assets.
2. Net working capital is part of the operating cash flow.
3. The lower the value of net working capital the greater the ability of a firm to meet its current obligations.
4.Firms with equal amounts of net working capital are also equally liquid.
5. Net working capital increases when inventory is sold for cash at a profit.
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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