Essentials of Corporate Finance
Essentials of Corporate Finance
8th Edition
ISBN: 9780078034756
Author: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 16.1, Problem 16.1BCQ
Summary Introduction

To discuss: Whether an increase in net working capital increases the cash.

Introduction:

Net working capital:

Working capital is the total of all current assets and current liabilities. The net working capital is the variation of current assets and current liabilities. It indicates the short-term liquidity of the firm.

Cash:

Cash is the monetary term which appears on the asset side of the balance sheet.

Cash indicates the money value of the company.

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