A firm’s balance sheets for year-end 2011 and 2012 contain the following data. All items are in millions of dollars.

	Dec. 31, 2011	Dec. 31, 2012
Accounts receivable	33.4	36.7
Inventories	26.4	30.7
Accounts payable	13.4	26.7

a.	Calculate the net working capital in 2011. (Enter your answer in millions rounded to 1 decimal place.)

Net working capital

$ million

b.	Calculate the net working capital in 2012. (Enter your answer in millions rounded to 1 decimal place.)

Net working capital

$ million

c.	What happened to investment in net working capital during 2012? (Input the amount as a positive value. Enter your answer in millions rounded to 1 decimal place.)

Net working capital has (Click to select)increaseddecreased by $ million.

Answer rating: 100% (QA)

a Net working capital in 2011 Accounts receivable Inventories Accoun... View the full answer