Question: Do the following events INCREASE or DECREASE or have NO EFFECT on net working capital? Inventory is purchased on credit. A $100 account receivable is

Do the following events INCREASE or DECREASE or have NO EFFECT on net working capital?

Inventory is purchased on credit.

A $100 account receivable is discounted and sold for $97 cash.

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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