Question

In 2017, the firm had $500 in Cash, $1,250 in Accounts Receivable, $1,100 in inventory, $3,500 in total fixed assets, $600 in Accounts Payable, $800 in Notes Payable, and $2,500 in total long-term debt. In 2018, the firm had $550 in Cash, $1,380 in Accounts Receivable, $1,120 in inventory, 4,600 in total fixed assets, $700 in Accounts Payable, $820 in Notes Payable, and $3,500 in total long-term debt. What was the change in Net Working Capital from 2017 to 2018?

Answer 1

	2017	2018	Changes
Current Assets
Cash	$             500	$             550	$           50
Account Receivables	$         1,250	$         1,380	$         130
Inventory	$         1,100	$         1,120	$           20
Less:
Current Liabilities
Account Payable	$             600	$             700	$         100
Notes payable	$             800	$             820	$           20
Change in working capital			$           80