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Net working capital decreases when: Net working capital decreases when: depreciation increases. a long - term debt is used to finance a fixed asset purchase.

Net working capital decreases when:
Net working capital decreases when:
depreciation increases.
a long-term debt is used to finance a fixed asset purchase.
a dividend is paid to current shareholders.
a credit customer pays his or her bill in full.
a new 3-year loan is obtained with the proceeds used to purchase inventory.

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