Answer:
a. - $3,200
b. $15,200
Explanation:
The computation of the working capital for both the years is shown below:
Beginning of Year
= Accounts receivable + inventory - accounts payable
= $25,400 + $12,700 - $15,200
= $22,900
End of year
= Accounts receivable + inventory - accounts payable
= $23,700 + $13,900 - $17,900
= $19,700
So, the change in net working capital
= $22,900 - $19,700
= - $3,200
b. The computation of the cash flow for the year is shown below:
= Sales - costs - change in working capital
= $36,700 - $24,700 - (-$3,200)
= $15,200
