An increase in current liabilities in the schedule of changes in working capital shows

The correct answer is C. decrease in working capital.

Working capital is the difference between current assets and current liabilities. An increase in current liabilities means that the company has more short-term debts to pay off, which will reduce its working capital.

Here is a brief explanation of each option:

• Option A: Increase in working capital. This is not the correct answer because an increase in current liabilities means that the company has more short-term debts to pay off, which will reduce its working capital.
• Option B: No change in working capital. This is not the correct answer because an increase in current liabilities will always lead to a decrease in working capital.
• Option C: Decrease in working capital. This is the correct answer because an increase in current liabilities means that the company has more short-term debts to pay off, which will reduce its working capital.
• Option D: Proportionate change in working capital. This is not the correct answer because an increase in current liabilities will always lead to a decrease in working capital, not a proportionate change.