Question

At the beginning of the year, a firm has current assets of $16,200 and current liabilities...

At the beginning of the year, a firm has current assets of $16,200 and current liabilities of $13,280. At the end of the year, the current assets are $14,800 and the current liabilities are $14,210. What is the change in net working capital?

?$470 ?$50 $470 ?$2,330 $2,330

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Answer #1
Beginning of year End of year
Current Assets (A) 16200 14800
Current Liabilities (B) 13280 14210
Net Working Capital (C=A-B) 2920 590
Change in net working Capital = End of year working capital - Beginning Working Capital
= 590-2920
= -2330

Change in Net Working Capital is -$2,330

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