The information below should be used for question 5 2012 and 2013 Balance Sheets

Question

The information below should be used for question 5 2012 and 2013 Balance Sheets for Nabors, Inc ($ millions) 2012 2013 2012 2013 Cash $ 310 $ 405 Accounts Payable $ 2,720 $ 2,570 Accounts Rec. 2640 3,055 Notes Payable 100 0 Inventory 3275 3,850 Long-Term Debt 7,875 8,100 Net Fixed Assets 10,960 10,670 Common Stock 5,000 5,250 Retained Earnings 1,490 2,060 Total Assets $ 17,185 $ 17,980 Total Liab. & Equity $ 17,185 $ 17,980 5. What is the change in net working capital from 2012 to 2013? a. $4,015 b. -$1,200 c. $1,335 d. -$3,405

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Change in Net Working Capital = Change in Current Assets - Change in Current Liabilties

Change in Current Assets = (405 - 310 + 3055 - 2640 + 3850 - 3275) = 1085

Change in Current Liabilties = (2570 - 2720 + 0 - 100) = -250

Change in Net Working Capital = 1085 - (-250) = $1335

Option C ($1335) is the correct answer.

Thanks.

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