Question: Do the following events increase or decrease or have no effect on net working capital? A. Inventory is purchased on credit. B. A $100 account
Do the following events increase or decrease or have no effect on net working capital?
A. Inventory is purchased on credit.
B. A $100 account receivable is discounted and sold for $97 cash.
C. The company has an open invoice for $100 but then chooses to take the 2% discount offered and pay $98 if paid within 10 days.
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