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which of the following actions could cause a company's change in net working capital to be negative for a given year

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okpalawalter8

"Borrow money from the bank using a note payable in nine months"  could cause a company's change in net working capital to be negative for a given year. Option A

This is further explained below.

What is net working capital?

Generally,  The firm's net working capital is essential because it provides insight into the liquidity of the organization and reveals whether or not it has sufficient funds to meet its immediate financial commitments.

Liquidity is the degree to which an organization is able to meet its current and future financial obligations.

If the figure for the firm's net working capital is zero or greater, then the company is in a position to fulfill its current obligations. If the number is less than zero, then the company is not in a position to meet its current commitments.

In conclusion, If a corporation "borrows money from the bank using a note due in nine months," their change in net working capital for the given year might end up being negative. This is one scenario in which this is a possibility.

Read more about net working capital

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