Net Working Capital for 2007 is $3,597 and Net Working Capital for 2008 is $1,890. What is the change in Net Working Capital?
A) $1,707
B) -$1,707
C) -$1,727
D) -$2,527

Question

Quizplus · Accepted Answer

The formula for change in net working capital is: 
Change in Net Working Capital = Net Working Capital (2008) - Net Working Capital (2007)
Change in Net Working Capital = $1,890 - $3,597 
Change in Net Working Capital = -$1,707
Therefore, the correct option is B, which is a negative value indicating a decrease in net working capital.

Net Working Capital for 2007 Is $3,597 and Net Working