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FINA 365 - Final Exam Review Exam with Questions and Answers Which one of the following will increase net working capital? Assume the current ratio is greater than 1.0. A. using cash to pay an accounts payable B. using cash to pay a long-term debt C. selling inventory at cost D. collecting an accounts receivable E. using a long-term loan to buy inventory ANSWER✓✓ E. using a long-term loan to buy inventory Which one of the following is a source of cash? A. an increase in accounts receivable B. an increase in fixed assets C. a decrease in long-term debt D. the payment of a cash dividend E. an increase in accounts payable ANSWER✓✓ E. an increase in accounts payable The distribution of shares in a subsidiary to existing parent company stockholders is called a(n): A. lockup transaction.
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