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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03-08-2017
Business

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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 · Answer 1 · 2017-08-12T03:53:33+02:00

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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