Question

Chang and Smith Tours has the following balance sheets: 2018 2019 Assets Cash $209 $197 Accounts Receivable 684 726 Inventory 918 1,023 Net Fixed Assets 2,014 1,944 Total Assets $3,825 $3,890 Liabilities and Equity Accounts Payable $748 $818 Notes Payable 306 300 Long-Term Debt 1,647 1,724 Stockholders' Equity 1,118 1,048 Total Liabilities and Equity $3,819 $3,890 What is the amount of net working capital for 2019

Answer 1

Chang and Smith Tours

The amount of net working capital for 2019 is:

$828.

Step-by-step explanation:

a) Data and Calculations:

Chang and Smith Tours

Balance sheets: 2018 2019

Assets

Cash $209 $197

Accounts Receivable 684 726

Inventory 918 1,023

Net Fixed Assets 2,014 1,944

Total Assets $3,825 $3,890

Liabilities and Equity

Accounts Payable $748 $818

Notes Payable 306 300

Long-Term Debt 1,647 1,724

Stockholders' Equity 1,118 1,048

Total Liabilities and Equity $3,819 $3,890

Working capital:

Current assets:

Cash $209 $197

Accounts Receivable 684 726

Inventory 918 1,023

Less current liabilities

Accounts Payable $748 $818

Notes Payable 306 300

Net working capital $757 $828

b) The net working capital is the difference between current assets and current liabilities.