The December 31, 2015, balance sheet of Maria's Tennis Shop, Inc., showed current assets of $1,145 and current liabilities of $935. The December 31, 2016, balance sheet showed current assets of $1,360 and current liabilities of $1,035. What was the company's 2016 change in net working capital, or NWC? (Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)

Question

Alonzo Boyle

Business

13 April, 06:34

The December 31, 2015, balance sheet of Maria's Tennis Shop, Inc., showed current assets of $1,145 and current liabilities of $935. The December 31, 2016, balance sheet showed current assets of $1,360 and current liabilities of $1,035. What was the company's 2016 change in net working capital, or NWC? (Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)

+2

Answers (1)

Know the Answer?

Jazmyn Shea · Answer 1

Answer: Change in net working capital = $115

Explanation:

Change in current assets = current assets in 2016 - current assets in 2015

= $1,360 - $1,145

= $215

Change in current Liabilities = current Liabilities in 2016 - current Liabilities in 2015

= $1,035 - $935

= $100

Therefore,

Change in net working capital = Change in current assets - Change in current Liabilities

= $215 - $100

= $115