Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko, 2013-2018
Pro Forma Assets & Liabilities for Ideko, 2013-2018

-The amount of the decrease in net working capital for Ideko in 2014 was closest to:
A)$4 090
B)$5 230
C)$3 410
D)$4 685

Question

Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko, 2013-2018
  Pro Forma Assets & Liabilities for Ideko, 2013-2018
 
-The amount of the decrease in net working capital for Ideko in 2014 was closest to:
A)$4 090 
B)$5 230 
C)$3 410 
D)$4 685

Quizplus · Accepted Answer

The net working capital for 2014 can be calculated by subtracting current liabilities from current assets. Net working capital for 2013= $16 100 - $10 450= $5 650. Net working capital for 2014= $11 750 - $7 890 = $3 860. Therefore, the decrease in net working capital for Ideko in 2014 was $5 650 - $3 860 = $3 410, which is closest to option C.

Use the Tables for the Question(s)below