Question $33$

The firm has an operating cash flow of $15,000.$ It spent $5,000$ on net capital spending and

increased its net working capital by $2,000.$ As a result, the total cash flow from assets

amounted to $8,000.$ Out of this, $3,000$ was distributed to shareholders, while $5,000$ was

allocated to bondholders. In the example, a dNWC $($change in net working capital$)$ of $2,000$

implies:

The firm increased its liquidity by investing in working capital

The firm took on new debt

The firm's current assets decreased

The firm paid off long$-$term debt