At the beginning of the year,a firm has current assets of $360 and current liabilities of $190.At the end of the year,the current assets are $510 and the current liabilities are $240.What is the change in net working capital?

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. At the beginning of the year, it is $360 - $190 = $170. At the end of the year, it is $510 - $240 = $270. The change in net working capital is $270 - $170 = $100.

At the Beginning of the Year,a Firm Has Current Assets