Gorwa Company

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September 27, 2018 at 4:24 pm #475887
Ema
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Gorwa Co’s Working capital is most likely to increase in which of the following of the following situations?
a. Payments to suppliers are delayed
b. The period of credit extended to customers is reduced.
c. NCA are sold
d. Inventory levels are increased

Sir kindly explain the answer to this question.

Thanks
September 28, 2018 at 7:12 am #475908
John Moffat
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If non-current assets are sold then either cash or receivables increase, which means working capital will increase.
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