Question

The 2014 balance sheet of Steelo, Inc., showed current assets of $3,135 and current liabilities of $1,545. The 2015 balance sheet showed current assets of $3,100 and current liabilities of $1,545.

What was the company’s 2015 change in net working capital, or NWC? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.)
Net working capital $

Answer 1

-$35

Step-by-step explanation:

The computation of the change in net working capital is as follows:

Net working capital = current assets - current liabilities

For 2014,

net working capital i s

= ($3,135 - $1,545)

= $1,590

And,

for 2015,

net working capital is

= ($3,100 - $1,545)

= $1,555

So, the change in net working capital is

= ($1,555 - $1,590)

= -$35