Homework SourseVisit Alcoa at wwwalcoacom What is the most recent annual re
Visit Alcoa at www.alcoa.com .What is the most recent annual report and locate the balance sheets for the last two years. Use these balance sheets to calculate the change in networking capital. How do you interpret this number?
Solution
Statement showing Change in WC
Thus compared to last year more fund is block in working capital
| Particulars | 2016 | 2017 |
| Current assets: | ||
| Receivables from customers | 668 | 811 |
| Other receivables | 166 | 232 |
| Inventories (I) | 1160 | 1453 |
| Fair value of derivative contracts (O) | 51 | 113 |
| Prepaid expenses and other current assets | 283 | 271 |
| Total Current Asset | 2328 | 2880 |
| Current liabilities: | ||
| Accounts payable, trade | 1455 | 1898 |
| Accrued compensation and retirement costs | 456 | 459 |
| Taxes, including income taxes | 147 | 282 |
| Fair value of derivative contracts | 35 | 185 |
| Other current liabilities | 707 | 412 |
| Long-term debt due within one year (L & O) | 21 | 16 |
| Total Current Asset | 2821 | 3252 |
| Net asset | -493 | -372 |
| Change in Net asset | 121 | |
| Thus more blockage of fund | 121 |
