When merchandise is purchased on credit, accounts payable increases. Accounts payable is a current liability, so total current liabilities increase when merchandise is purchased on credit.
Net working capital is total current assets minus total current liabilities. When merchandise is purchased on credit, inventory and accounts payable increase by the same amount. The difference between the two will be unchanged by the equal increases.
When merchandise is purchased on credit, inventory increases. Inventory is a current asset, so total current assets increase when merchandise is purchased on credit.
The current ratio is total current assets divided by total current liabilities. When merchandise is purchased on credit, both inventory (a current asset) and accounts payable (a current liability) will increase. Since the beginning values of total current assets and total current liabilities are different, the same amount of increase to both will change the ratio between them.
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