Given the following financials: Balance Sheet items Inventory Accounts Receivable Accounts Payable Income Statement items Sales...

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Given the following financials: Balance Sheet items Inventory Accounts Receivable Accounts Payable Income Statement items Sales Cost of Goods Sold Previous Year 2,650,000 1,220,000 950,000 Previous Year 32,070,000 11,960,000 Current Year 3,000,500 1,400,600 1,250,400 Current Year 35,400,200 15,750,000 a) What is the Working capital for both years for the above firm? b) What is in your opinion the source of difference (if any) between two years? Given the following financials: Balance Sheet items Inventory Accounts Receivable Accounts Payable Income Statement items Sales Cost of Goods Sold Previous Year 2,650,000 1,220,000 950,000 Previous Year 32,070,000 11,960,000 Current Year 3,000,500 1,400,600 1,250,400 Current Year 35,400,200 15,750,000 a) What is the Working capital for both years for the above firm? b) What is in your opinion the source of difference (if any) between two years?

Answer rating: 100% (QA)

Answer a Working capital is calculated by subtracting current liabilities from current assets Therefore to determine the working capital for both years we need to calculate the current assets and curr... View the full answer