Which of the Following Is True of the Impact of Cash

Multiple Choice

Which of the following is true of the impact of cash flows on net working capital?

A) The higher the cash inflows lower is the net working capital.
B) The lower the cash outflows lower is the net working capital.
C) The more predictable the cash inflows of a firm, the more current assets a firm needs.
D) The more predictable the cash inflows of a firm, the easier is the working capital management.