Which one of the following will increase the value of a firm's net working capital?

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2026-07-17 21:00

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Net working capital is calculated as current assets minus current liabilities. To increase a firm's net working capital, one could either increase current assets, such as by boosting cash or inventory levels, or decrease current liabilities, such as by paying off short-term debt. For example, collecting accounts receivable more quickly would increase current assets and thus raise net working capital.

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