Which events increase net working capital? Check all that apply: Issuing bonds and using the proceeds...
Which events increase net working capital?
Check all that apply:
Issuing bonds and using the proceeds to build a new factory
Making a payment on a 4-year loan
Selling inventory at cost
Getting a new 4-year loan and using it to buy inventory
Homework Answers
The correct answer is "Getting a new 4-year loan and using it to buy inventory".
Net working capital = Current assets - Current liabilities
Net working capital would increase when either current assets
increase or current liabilities decrease.
In this case inventory will increase. Inventory is a current
assets. So, it increases the net working capital.
Add Answer to:
Which events increase net working capital?
Check all that apply:
Issuing bonds and using the proceeds...
Part 1 Which events increase net working capital? Select all that apply: Issuing bonds and using...
Part 1 Which events increase net working capital? Select all that apply: Issuing bonds and using the proceeds to build a new factory Making a payment on a 4-year loan Getting a new 4-year loan and using it to buy inventory Selling inventory at cost
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