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The 2017 balance sheet of Dream, Inc., showed current assets of $3,175 and current liabilities of $1,645. The 2018 balance sheet showed current assets of $2,920 and current liabilities of $1,620.

What was the company’s 2018 change in net working capital, or NWC? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

Respuesta :

mchaid015

Answer:

A decrease of $230 or -230

Explanation:

Net working capital is the difference between current assets and current liabilities. To compute the change in working capital, we must compute the 2017's working capital first, then the 2018 working capital. Afterwards, find the difference between 2017 and 2018 net working capital.

2017 working capital:

Current assets $3,175

Less: Current liabilities $1,645

Net working capital $1,530

2018 working capital:

Current assets $2,920

Less: Current liabilities $1,620

Net working capital $1,300

CHANGE IN WORKING CAPITAL

2017 NWC - 2018 NWC

$1,530 - $1,300 = -230

Officialalehpeter

Answer:

-$230

Explanation:

Working Capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

WC 2017 = $3175 - $1645 = $1530

WC 2018 = $2920 - 1620 = 1300

Change in Working Capital = -$230