A firm uses January 1 to December 31 financial reporting year. The firm reported assets of JPY 100 million and a current ratio of 1.25 in its December 31, 2013 balance sheet. The December 31, 2014, balance sheet showed current assets of JPY 80 million and a current ratio of 1.5. What was the firm's 2014 change in net working capital, or NWC?

Answer rating: 100% (QA)

ANSWER To calculate the change in net working capital NWC for the firm in 2014 we need to first determine the NWC for both years Net working capital i... View the full answer