Consider the information below from a firm\'s balance sheet for 2007 and 2008. C
ID: 2701808 • Letter: C
Question
Consider the information below from a firm's balance sheet for 2007 and 2008.
Current Assets 2008 2007 Change
Cash and Equivalents $1,561 $1,800 -$ 239
Short-Term Investments $1,052 $3,010 -$1,958
Accounts Receivable $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 2008? What is it for 2007? 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?
Explanation / Answer
NWC for 2007 = 10083 - 6486 = 3597
NWC for 2008 = 8752 - 6862 = 1890
change in NWC = 3597 - 1890 = 1707
cash flow from assests = 7155 - 2372 = 4783