Which of the following account changes would reduce a firm's net working capital if all other account balances are held constant?

A) Increase in inventories
B) Increase in accounts payable
C) Decrease in accounts receivable
D) b and c
E) None of the above

Net Working Capital

The disparity between an organization's immediate assets and liabilities, showcasing its financial stability in the short-term.

Accounts Payable

Short-term liabilities or the money a company owes to suppliers or vendors for goods and services that were purchased on credit.

Inventories

Quantifiable goods or materials that a business holds with the intent of selling them in the course of business operations, constituting a significant portion of a company's assets.