Business, 18.06.2020 23:57 nanamath5662
For the year, B&K United increased current liabilities by $1,400, decreased cash by $1,200, increased net fixed assets by $340, increased accounts receivable by $200, and decreased inventory by $150. What is the annual change in net working capital
Answer from: natalyarenassalgado
net working capital decreased by $2,250 during the year
Explanation:
net working capital = current assets - current liabilities
current assets: -$1,200 (cash) + $200 (accounts receivable) - $150 (inventory) = net change of -$850
current liabilities: +$1,400 (current liabilities) = net change of +$1,400
net change in working capital = -$850 - $1,400 = -$2,250
fixed assets are not included in this calculation
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For the year, B&K United increased current liabilities by $1,400, decreased cash by $1,200, incr...
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