Canyon tours showed the following components of working capital last year. Begin
ID: 2699541 • Letter: C
Question
Canyon tours showed the following components of working capital last year.
Beginning End of Year
Accounts receiavable 27600 24800
Inventory 13800 16100
Accounts Payable 16300 20100
What was the chang in net working capital during the years?
if sales were 37,800 and cost were 25800, what was the cash flow for the year (ignor taxes)
Explanation / Answer
net working capital change is ( 24800 + 16100 - 20100 ) - ( 27600 + 13800 - 16300 ) = -4300
cash flow = 37800 - 25800 - ( -4300 ) = 16,300