A decrease in accounts payable increases net working capital, all else constant.
Net working capital is equal to long-term assets minus long-term liabilities.
The lower the net working capital the greater the ability of a firm to meet its current obligations.
The change in net working capital is equal to current assets minus current liabilities.
Net working capital is a part of the operating cash flow.
Recently Asked Questions
- Kindly assist with the following practice problems, handwrite your solution clearly, thanks
- The results of a hypothesis test are reported as follows : t (15) = 2.70 , p < .05 . Based on this report , how many individuals were in the sample ?
- A researcher conducts a hypothesis test using a sample of n = 40 from an unknown population . What is the df value for the t statistic ?