Question: Having trouble with net working capital. Pick the correct statement related to net working capital from below Multiple Choice A firm's ablifty to meet its



Pick the correct statement related to net working capital from below Multiple Choice A firm's ablifty to meet its current obligations Increases as the firm's net working capital decreases An increase in net working capital must also Increase current assets Net working capital increases when inventory is sold for cash at a profit A firm's ability to meet its current obligations increases as the firm's net working capital decreases. An increase in net working capital must also increase current assets. Net working capital increases when inventory is sold for cash at a profit Firms with equal amounts of net working capital are also equally liquid Net working capital is a part of the operating cash flow The value of a firm's net working capital can be reduced by the firm's Multiple Choice use of cash to pay a supplier depreciation of an asset collection of an accounts receivable use of cash to pay a supplier depreciation of an asset collection of an accounts receivable purchase of inventory on credit sale of inventory at a loss
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