Holly's Meat Markets has accumulated $128,900 in net working capital. Which one of the following will reduce this amount?
A) A reduction in accounts payable.
B) An increase in inventory.
C) An increase in a current liability.
D) A reduction in the cash balance.
E) An increase in accounts receivable.

Question

Quizplus · Accepted Answer

An increase in a current liability will reduce net working capital.

Holly's Meat Markets Has Accumulated $128,900 in Net Working Capital