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4 August, 02:34

Over the past year, a firm decreased its current assets and increased its current liabilities. as a result, the firm's net working capital:

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  1. 4 August, 02:48
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    As a result, the firm's net working capital: had to decrease

    Net working capital is calculated by subtracting current liabilities to the current assets.

    C. Assets - C Liability = Net working Capital

    So, if the current assets is decreased and the current liability increased, it will cause a larger subtraction to the equation
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