Question

At the beginning of the year, a firm had current assets of $262 and current liabilities of $210. at the end of the year, the current assets are $425 and the current liabilities are $300. what is the change in net working capital?

Answer 1

At the beginning of the year, the total net working capital is $52.00 and at the end of the year it became $125. There was a $73.00 net income added to the working capital at the end of the year.