American Corporation has the following financial information. Year 1 Year 2 Cash $ 202.95 $ 245.90 A/R 398.02 485.34 Inventory 785.12 648.54 If Year 1 is the base year, what is the percentage increase/decrease of each current asset amount

Answer: The answer is given below

Explanation:

Since Year 1 has been given as the base year, the percentage change will be:

(Year 2 - Year 1) / Year 1 * 100

Cash:

= (245.90 - 202.95) / 202.95 * 100

= 42.95/202.95 * 100

= 0.21 * 100

= 21% Increase

A/R:

= (485.34 - 398.02) / 398.02 * 100

= 87.32/398.02 * 100

= 0.22 * 100

= 22% Increase

Inventory:

= (648.54 - 785.12) / 785.12 * 100

= - 136.58/785.12 * 100

= - 0.17 * 100

= 17% decrease