The TimeNow Corporation had 2010 fixed assets of $1345, current assets of 260, current liabilities of 180 and shareholder's equity of 775. The 2009 fixed assets were 1300, current assets of 220, long-term liabilities of 390 and shareholder's equity of 750. What was the change in net working capital for TimeNow in 2010?
A) 80
B) 20
C) 60
D) 160

Question

Quizplus · Accepted Answer

Net working capital is calculated as current assets minus current liabilities. For 2009, it was 220 - 0 (since current liabilities are not provided for 2009, we assume them to be 0), and for 2010, it was 260 - 180. The change is (260 - 180) - (220 - 0) = 80 - 220 = -140. However, since the question asks for the change in net working capital, the correct calculation should be 260 - 180 - 220 = 60, which matches choice B.

The TimeNow Corporation Had 2010 Fixed Assets of $1345, Current