Suppose you are given the following financial statement information for 2015 and

Question

Suppose you are given the following financial statement information for 2015 and 2016. Calculate the change in net working capital from 2015 to 2016. (Enter a whole number)

Income Statement (2016) Balance Sheet Sales $4,206 2015 2016 Cost of goods sold $2,058 Cash $347 $593 Other Expenses $65 Accounts Receivable $210 $280 Depreciation $1,497 Inventory $469 $537 EBIT $586 Current Assets $1,026 $1,410 Interest $45 Net Fixed Assets $224 $306 EBT $541 Total Assets $1,250 $1,716 Taxes (30%) $162.30 Net income $378.70 Accounts Payable $185 $200 Dividends $189.35 Notes Payable $158 $193 Addition to Retained Earnings $189.35 Current Liabilities $343 $393 Long-term Debt $275 $627 Total Equity $632 $696 Total L + E $1,250 $1,716

Explanation / Answer

2015:

Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = $1,026 - $343
Net Working Capital = $683

2016:

Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = $1,410 - $393
Net Working Capital = $1,017

Change in Net Working Capital = Net Working Capital, 2016 - Net Working Capital, 2015
Change in Net Working Capital = $1,017 - $683
Change in Net Working Capital = $334

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