In 2011, a firm books the following: increase in cash, $0; increase in inventories $13; increase in accounts receivable, $29; increase in accounts payable, $17; what is the firms change in net working capital?
given:
increase in inventories= $13
increase in accounts receivable =$29
increase in accounts payable=$17
solution:
change in net working capital = increase in inventories + increase in accounts receivable - increase in accounts payable.
change in net working capital = 13+29-17 = $25
