Question

A company purchased machinery worth ₹5 lakh during the year and repaid a long-term loan of ₹3 lakh. It generated ₹12 lakh from operations. What is the net change in working capital, if opening and closing working capital were ₹4 lakh and ₹6 lakh respectively?

A Increase of ₹2 lakh
B Decrease of ₹2 lakh
C Increase of ₹4 lakh
D Decrease of ₹4 lakh
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