Question

At the beginning of the year, a firm has current assets of $327 and current liabilities of $231. At the end of the year, the current assets are $491 and the current liabilities are $271. What is the change in net working capital?

Answer 1

Change in the Net working capital is $124

Step-by-step explanation:

Working Capital can be define as the net amount between the Current Asset and Current liability of a particular year

It is better written as Working capital = Current Asset - Current Liabilities.

At the beginning of the year, the working capital is = $327 - $231 = $96

At the end of the year, the working capital is = $491 - $271 = $220

Change in Net working capital = $96 - $220

Change in Net working capital = $124