Question

At the beginning of the year, a firm has current assets of $321 and current liabilities of $225. At the end of the year, the current assets are $479 and the current liabilities are $265. What is the change in net working capital

Answer 1

Answer:

$118

Explanation:

•Net working capital = current assets - current liabilities

•Change in NWC = ending NWC - beginning NWC

•Beginning NWC = 321-225= $96

•Ending NWC = 479- 265= $214

•Change in NWC = 214-96= $118

Change in NWC = $118

Therefore the change in net working capital is $118