Consider the information below from a firm\'s balance sheet for 2011 and 2012. C
ID: 2660999 • Letter: C
Question
Consider the information below from a firm's balance sheet for 2011 and 2012.
Current Assets 2012 2011 Change
Cash and Equivalents $1,561 $1,800 -$239
Short-term investments $1,052 $3,010 -1,958
accounts receviable $3,616 $3,129 $487
inventories $1, 816 $1,543 $273
other current assets $707 $601 $106
Total current assets $8,752 $10,083 -$1,331
Current Liabilities
Accounts payable $5,173 $5,111 $62
short-term debt $288 $277 $11
other current liabilities $1,401 $1,098 $303
total current liabilities $6,862 $6,486 $376
What is the Net Working Capital for 2012?
What is it for 2011?
What is the Change in Net Working Capital (NWC)?
Assuming the Operating Cash Flows (OCF) are $7,155 and the Net Capital Spending (NCS) is $2,372, what is the Cash Flow from Assets?
Please show all work.
Explanation / Answer
Net Working Capital for 2012 = 8752- 6862 = $1,890
Net Working Capital for 2011 = 10,083 - 6846 = $3,237
Change = 1890-3237 = -1347
Cash flow from assets= Operating Cash Flow- Capital Spending - Additions to NWC = 7155 - 2372 - (-1347) = $6,130