Question

In: Finance

Andre's Dog House had current assets of $67,200 and current liabilities of $71,100 last year. This...

Andre's Dog House had current assets of $67,200 and current liabilities of $71,100 last year. This year, the current assets are $82,600 and the current liabilities are $85,100. The depreciation expense for the past year is $9,600 and the interest paid is $8,700. What is the amount of the change in net working capital (NWC)?

Solutions

Expert Solution

net working capital=current assets-current liabilities

net working capital last year=(67200-71100)=-3900

net working capital this year=(82600-85100)=-2500

Hence change in net working capital=net working capital this year-net working capital last year

=-2500-(-3900)

=$1400


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