Question

The December 31, 2015, balance sheet of Maria's Tennis Shop, Inc., showed current assets of $1,145 and current liabilities of $935. The December 31, 2016, balance sheet showed current assets of $1,360 and current liabilities of $1,035.What was the company's 2016 change in net working capital, or NWC? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Answer 1

Answer: Change in net working capital = $115

Explanation:

Change in current assets = current assets in 2016 - current assets in 2015

                                          = $1,360 - $1,145

                                          = $215

Change in current Liabilities = current Liabilities in 2016 - current Liabilities in 2015

                                               = $1,035 - $935

                                               = $100

Therefore,

Change in net working capital = Change in current assets - Change in current Liabilities

                                                    = $215 - $100

                                                    = $115