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1 June, 22:52

The 2017 balance sheet of Dream, Inc., showed current assets of $4,810 and current liabilities of $2,230. The 2018 balance sheet showed current assets of $5,360 and current liabilities of $2,970. What was the company's 2018 change in net working capital, or NWC? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

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  1. 1 June, 23:13
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    -$190

    Explanation:

    Net working capital:

    = Current assets - Current liabilities

    Net working capital for 2017:

    = ($4,810 - $2,230)

    = $2,580

    Net working capital for 2018:

    = ($5,360 - $2,970)

    = $2,390

    change net working capital:

    = ($2,390 - $2,580)

    = ($190) (Negative)

    Therefore, the company's 2018 change in net working capital, or NWC is ($190).
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