Homework SourseSuppose you are given the following financial statement info
Suppose you are given the following financial statement information for 2015 and 2016. Calculate the change in net working capital from 2015 to 2016. (Enter a whole number)
| Income Statement (2016) | Balance Sheet | ||||
| Sales | $4,206 | 2015 | 2016 | ||
| Cost of goods sold | $2,058 | Cash | $347 | $593 | |
| Other Expenses | $65 | Accounts Receivable | $210 | $280 | |
| Depreciation | $1,497 | Inventory | $469 | $537 | |
| EBIT | $586 | Current Assets | $1,026 | $1,410 | |
| Interest | $45 | Net Fixed Assets | $224 | $306 | |
| EBT | $541 | Total Assets | $1,250 | $1,716 | |
| Taxes (30%) | $162.30 | ||||
| Net income | $378.70 | Accounts Payable | $185 | $200 | |
| Dividends | $189.35 | Notes Payable | $158 | $193 | |
| Addition to Retained Earnings | $189.35 | Current Liabilities | $343 | $393 | |
| Long-term Debt | $275 | $627 | |||
| Total Equity | $632 | $696 | |||
| Total L + E | $1,250 | $1,716 |
Solution
2015:
Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = $1,026 - $343
Net Working Capital = $683
2016:
Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = $1,410 - $393
Net Working Capital = $1,017
Change in Net Working Capital = Net Working Capital, 2016 - Net Working Capital, 2015
Change in Net Working Capital = $1,017 - $683
Change in Net Working Capital = $334
