Accounting for IGCSE & O level - Final Statements (Section 8 - No. 40)
What would increase working capital?
Increasing accounts payable.
Collecting cash from customers.
Purchasing inventory on credit.
Increasing accounts receivable.
Explanation
Working capital is Current Assets - Current Liabilities. Collecting cash from customers increases cash (a current asset). Increasing accounts receivable (a current asset) will also increase working capital.