Final answer:
A change in accounts payable and inventory levels can influence net working capital. It could be negative if initial current assets were less than liabilities and if both accounts receivable and inventory decreased. A bank's T-account shows assets equalling liabilities plus net worth, which affects net working capital.
Step-by-step explanation:
Net working capital can be positive, negative, or zero, depending on the change in a company's current assets and liabilities. In a given scenario, such as when accounts payable increase while inventory decreases, or both accounts receivable and inventory decrease, the net working capital could potentially decrease. If the beginning current assets were less than the beginning current liabilities, this indicates an initial negative working capital; thus, if liabilities continued to increase and/or assets decreased during the year, it is likely that the ending net working capital will be negative.
A company's 'T-account' helps visualize this balance, separating assets on the left from liabilities (plus net worth) on the right. In the context of a bank, the assets include reserves, loans made, and government securities purchased, while liabilities include the bank's deposits. The net worth is calculated as total assets minus total liabilities. A positive net worth contributes to a positive net working capital, and vice versa.