ballislifeqw2546 ballislifeqw2546
  • 03-08-2017
  • Business
contestada

Over the past year, a firm decreased its current assets and increased its current liabilities. as a result, the firm's net working capital:

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andriansp andriansp
  • 12-08-2017
as a result, the firm's net working capital: had to decrease
Net working capital is calculated by subtracting current liabilities to the current assets.

C. Assets - C Liability = Net working Capital

So, if the current assets is decreased and the current liability increased, it will cause a larger subtraction to the equation
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