The change in net working capital from year 1 to year 2 is closest to:
A)a decrease of $360
B)an increase of $360
C)an increase of $396
D)a decrease of $396

Question

Quizplus · Accepted Answer

The change in net working capital is calculated as the difference between the current assets and current liabilities. From year 1 to year 2, the current assets increased by $360 and the current liabilities decreased by $36, resulting in an increase in net working capital of $360.

The Change in Net Working Capital from Year 1 to Year