Question

At the beginning of the year, a firm has current assets of $331 and current liabilities of $235. At the end of the year, the current assets are $499 and the current liabilities are $275. What is the change in net working capital

Answer 1

Answer:

$128

Explanation:

Calculation for What is the change in net working capital

Using this formula

Change in net working capital=(Ending current assets-Ending current liabilities)-(Beginning current assets- Beginningcurrent liabilities

Let plug in the formula

Change in net working capital = ($499 -275) – ($331 -235)

Change in net working capital =$224-$96

Change in net working capital = $128

Therefore the change in net working capital is $128