Assume the following information from the financial statements of ReStateM Company:

The change in net working capital for ReStateM Company is:
A) Increase $7,000
B) Decrease $7,000
C) Increase $2,000
D) Decrease $2,000

Question

Assume the following information from the financial statements of ReStateM Company:
  
The change in net working capital for ReStateM Company is: 
A) Increase $7,000 
B) Decrease $7,000 
C) Increase $2,000 
D) Decrease $2,000

Quizplus · Accepted Answer

Change in AR + change in I - change in AP = 4 - 2 - (-5)= increase 7

Assume the Following Information from the Financial Statements of ReStateM