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What does change in net working capital actually mean? How can an increase in net working capital represent an increase in current assets? For example,
What does change in net working capital actually mean? How can an increase in net working capital represent an increase in current assets? For example, if inventory increases by a certain amount, then wouldn't cash increase by the same amount, or current liabilities increase by the same amount (assuming it the inventory is bought on credit)? So I don't see what this is saying in relation to cash flows.
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