Answer:
A
Explanation:
Net working capital is the difference between current assets and current liabilities.
To understand better, let us assume that the current assets of a company is $50 million and the current liabilities is $10 million. The net working capital is $40 million
If the company increased current assets to $70 million and reduced current liabilities to $5 million. the net working capital is $65 million
So, net working capital increases when a firm increases its current assets and decreases its current liabilities
