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.)

Question

Business

Logan Curry

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.)

+1

Answers (1)

Know the Answer?

Darrell Ayala · Answer 1

-$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).