Test 1 A.tst

1. 8) Which one of the following statements concerning net working capital is correct?
   1. A) Net working capital may be a negative value.
   2. B) Total assets must increase if net working capital increases.
   3. C) Net working capital is the amount of cash a firm currently has available for spending.
   4. D) Net working capital increases when inventory is purchased with cash.
   5. E) Net working capital excludes inventory.