Which one of the following statements concerning net working capital is correct?
A.
The lower the value of net working capital the greater the ability of a firm to meet its current obligations.
B.
An increase in net working capital must also increase current assets.
C.
Net working capital increases when inventory is sold for cash at a profit.
D.
Firms with equal amounts of net working capital are also equally liquid.
E.
Net working capital is a part of the operating cash flow.