If the firm was to shift $2,000 of current liabilities to long-term fu

If the firm was to shift $2,000 of current liabilities to long-term funds, the firm’s net working capital would ________, the annual cost of financing would ________, and the risk of insolvency would ________, respectively. (See Table 14.2)

A) decrease; decrease; increase
B) increase; increase; decrease
C) decrease; increase; decrease
D) increase; decrease; decrease

ANSWER

B