What will be the change in net working capital if you observe the following changes in current assets and current liabilities? (I.) Current assets increase by $170,000.
(II)) Current liabilities decrease by $60,000.

Question

Quizplus · Accepted Answer

The change in net working capital is calculated as follows:
Change in net working capital = (change in current assets - change in current liabilities)
= ($170,000) - (-$60,000)
= $230,000

Therefore, the net working capital will increase by $230,000. The correct answer is option B.

What Will Be the Change in Net Working Capital If