Andre's Dog House had current assets of $67,200 and current liabilities of $71,100 last year.This year, the current assets are $82,600 and the current liabilities are $85,100.The depreciation expense for the past year is $9,600 and the interest paid is $8,700.What is the amount of the change in net working capital?
A)-$2,800
B)-$1,400
C)$1,400
D)$2,100
E)$2,800

Question

Quizplus · Accepted Answer

The change in net working capital is the difference between the current assets and current liabilities at the beginning and end of the year. Last year, the net working capital was $67,200 - $71,100 = -$3,900. This year, the net working capital is $82,600 - $85,100 = -$2,500. The change in net working capital is -$2,500 - (-$3,900) = $1,400.

Andre's Dog House Had Current Assets of $67,200 and Current