Question

In: Finance

Account Balance ​12/31/20162016 Balance ​12/31/20172017 Accumulated depreciation   $ 4 comma 242$4,242 $ 4 comma 860$4,860 Accounts...

Account

Balance

​12/31/20162016

Balance

​12/31/20172017

Accumulated depreciation  

$ 4 comma 242$4,242

$ 4 comma 860$4,860

Accounts payable  

$ 2 comma 904$2,904

$ 3 comma 207$3,207

Accounts receivable  

$ 3 comma 152$3,152

$ 3 comma 649$3,649

Cash  

$ 1 comma 200$1,200

$ 1 comma 499$1,499

Common stock  

$ 4 comma 781$4,781

$ 7 comma 281$7,281

Inventory  

$ 4 comma 359$4,359

$ 5 comma 171$5,171

​Long-term debt  

$ 3 comma 601$3,601

$ 2 comma 432$2,432

​Plant, property, and equipment

$ 8 comma 682$8,682

$ 9 comma 843$9,843

Retained earnings

$ 1 comma 865$1,865

$ 2 comma 382$2,382

PrintDone

construct a balance sheet for

2016 and 2017.

b. list all the working capital accounts.

c. find the net working capital for the years ending

2016 and 2017.

d. calculate the change in net working capital for the year

2017.

Solutions

Expert Solution

Answer of Part b:

Working Capital Accounts are Cash, Accounts Receivable, Inventory, and Accounts Payable

Answer of Part c:

Net Working Capital 2016 = Current Assets – Current Liabilities
Net Working Capital 2016 = $8,711 - $2,904
Net Working Capital 2016 = $5,807

Net Working Capital 2017 = Current Assets – Current Liabilities
Net Working Capital 2017 = $10,319 - $3,207
Net Working Capital 2017 = $7,112

Answer of Part d:

Change in Net Working Capital = Net Working Capital 2017 – Net Working Capital 2016
Change in Net Working Capital = $7,112 - $5,807
Change in Net Working Capital = $1,305

jeff jeffy answered 7 months ago
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