If the firm was to shift $3,000 of current assets to fixed assets, the

If the firm was to shift $3,000 of current assets to fixed assets, the firm’s net working capital would ________, and the risk of insolvency would ________, respectively. (See Table 14.2)

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

 

 

ANSWER

D

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