Question

The 2018 balance sheet of Saddle Creek, Inc., showed current assets of $1,490 and current liabilities of $980. The 2019 balance sheet showed current assets of $1.700 and current liabilities of $1,080. What was the company's 2019 change in net working capital, or NWC? O $110 O -$310 O -$220 O $310 O $2.170

Answer 1

The change in net working capital for 2019 is $110.

Step-by-step explanation:

To calculate the change in net working capital (NWC), we need to find the difference between the current assets and current liabilities for both years. In 2018, the current assets were $1,490 and the current liabilities were $980, giving a NWC of $1,490 - $980 = $510. In 2019, the current assets were $1,700 and the current liabilities were $1,080, giving a NWC of $1,700 - $1,080 = $620. The change in NWC is calculated by subtracting the NWC of the previous year from the NWC of the current year. Therefore, the change in NWC for 2019 is $620 - $510 = $110.