Question

The following information is for

Winding Lane LodgeWinding Lane Lodge

Requirement

1.	What were the dollar amounts of change and the percentage of each change in Winding Lane LodgeWinding Lane Lodge​'s net working capital during 2018 and 2017​? Is this trend favorable or​ unfavorable?

​(Use parentheses or a minus sign for a decrease in working capital. Round the percentages to the nearest​ one-tenth percent,​ X.X%.)

	2018		2017		2016
Total current assets	$409,000		$240,000		$240,000
Total current liabilities	377,500		150,000		120,000
Working capital
Dollar change in working capital
Percentage change in working capital		%		%

Answer 1

Working Capital =  Total Current Assets - Total Current Liabilities

Change in Working Capital= Working Capital (Present year) - Working Capital (previous year)

Percentage change in Working Capital = Working Capital (Present year) - Working Capital (Previous year) Working Capital (previous year)

The answer to above question is provided herewith:

	2018		2017		2016
Total current assets               (A)	$409,000		$240,000		$240,000
Total current liabilities           (B)	$377,500		$150,000		$120,000
Working capital                 (C=A-B)	$31,500		$90,000		$120,000
Dollar change in working capital	($58,500)		($30,000)
Percentage change in working capital	- 65	%	- 25	%

	2018		2017		2016
Dollar change in working capital	=$31,500- $90,000 = $58,500		=$90,000- $120,000 =($30,000)
Percentage change in working capital	= ($58,500)/$90,000*100 = -65%	%	=($30,000)/$120,000*100 = -25%	%