Question 171307
First thing.  Please stop typing in all CAPS.  It is the electronic equivalent of shouting, therefore both rude and annoying.  Thank you.


As to your question:


You can't say anything about liquidity because you don't know the character of the current assets.  Those assets may or may not be liquid.  Hence, answers A and C can be excluded.


Since there is no information in the problem that would indicate whether or not the increase in current assets has any impact either way on profitability, you can also exclude answer D.


B is the only one that is left, and it makes sense because the investment in current assets has to come from somewhere, and that somewhere is Net Working Capital.