b. Net working capital.
Net working capital = Current assets - Current liabilities.
Purchase inventory on credit increases both current assets and current liabilities by the same amount.
Hence, the only ratio that is not affected by this change should be net working capital.
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MINH LE DUC CHIEU
Other
Orient Software Development Corporation
HO CHI MINH CITY
Viet Nam
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Original Message:
Sent: 04-14-2017 10:09 AM
From: Aswani Kumar Nimmagadda
Subject: CMA Pop Quiz - Q175
d. current ratio
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