Question

The 2017 balance sheet of Dream, Inc., showed current assets of $3,175 and current liabilities of $1,645. The 2018 balance sheet showed current assets of $2,920 and current liabilities of $1,620.
What was the company’s 2018 change in net working capital, or NWC?

Answer 1

Answer:

($230)

Explanation:

Net working capital = Current assets - Current liabilities

2017 Net working capital

= $3,175 - $1,645

= $1,530

2018 Net working capital

= $2,920 - $1,620

= $1,300

Change in net working capital

= $1,300 - $1,530

= -$230

Therefore the company's 2018 change in net working capital is ($230).