At the beginning of the year,a firm had total assets of $51,400,fixed assets of $32,800,and current liabilities of $13,280.At the end of the year,the current assets are $14,800,the fixed assets are $34,100,and the current liabilities are $14,210.What is the change in net working capital for the year?
A)−$18,930
B)−$6,950
C)$11,470
D)−$4,730
E)$9,110

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. At the beginning of the year, the current assets were $51,400 (total assets) - $32,800 (fixed assets) = $18,600. The net working capital at the beginning was $18,600 (current assets) - $13,280 (current liabilities) = $5,320. At the end of the year, the net working capital was $14,800 (current assets) - $14,210 (current liabilities) = $590. The change in net working capital is $590 (end of year) - $5,320 (beginning of year) = -$4,730.

At the Beginning of the Year,a Firm Had Total Assets