The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $2,584 and current liabilities of $1,

Question

3 years ago

13

The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $2,584 and current liabilities of $1,

191. The December 31, 2010, balance sheet showed current assets of $2,644 and current liabilities of $1,048. What was the company’s 2010 change in net working capital, or NWC?

Business

1 answer:

Igoryamba · Answer 1 · 2022-06-30T07:14:37+03:00

Answer: ($203)

Explanation:

The company’s 2010 change in net working capital will be calculated thus:

Net working capital = current assets - current liabilities

For 2009, net working capital will be:

= $2,584 - $1,191

= $1393.

For 2010, net working capital will be:

= $2,644 - $1,048

= $1596

Change in net working capital will be:

= $1393 - $1596

= ($203)