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Ritter Corporation’s accountants prepared the following financial statements for year-end 2021: Determine the change in net working capital in 2021.

Ritter Corporation’s accountants prepared the following financial statements for year-example-1

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The change in net working capital in 2021 is $7. The Option D is correct.

The change in net working capital refers to the difference between a company's current assets and current liabilities between two accounting periods.

Change in net working capital in 2021 = ((Cash of 2021 + Other Current Assets of 2021) - (Cash of 2020 + Other Current Assets of 2020)) _ (Accounts Payable of 2021 - Accounts Payable of 2020)

= ($69 + $174) - ($57 + $167) - ($129 - $117)

= $7

Therefore, the change in net working capital in 2021 is $7.

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