Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

During the year, Mason Company's current assets increased by $120,0, current liabilities decreased by $50,0, and net working capital

A. lncreased by $70,0. B. Did not change. C. Decreased by $170,0. D. lncreased by $170,0.

user-image
Question added by Deleted user
Date Posted: 2014/04/23
MAJOUL Fadhel - CPA- CIA-CFE-CRMA-CISI
by MAJOUL Fadhel - CPA- CIA-CFE-CRMA-CISI , Consulting role related to Internal Audit , Dublin Investment & Management of Health Services Co

D-Increased by170

exple : CA =0  CL =100   WK= -100

                 =120         =50  WK =70   => inrease by170

Muhammad Akram Shahzad Mughal
by Muhammad Akram Shahzad Mughal , Assist. Manager Inventory & Warehouse , KahrPlast Co.

D increased by $170

Mohammed Al-Najdawi
by Mohammed Al-Najdawi , Computer Technician , Ministry of Education/computer & network maintenance

sorry i have no idea, but from the samples it,s 170 $.

Mahmoud Hamid
by Mahmoud Hamid , Finance Manager , Experts

Since Working Capital = CA - CL, when CA increase by $, CL decreae by $, the result is an increase in working capital by $

Nishant Bhatia
by Nishant Bhatia , Finance Manager , Bikram Industries Intl Fzc

Agreed wtih Fajoul, The NWC will increase ! 

MOHAMMAD SARFARAZUL HASSAN
by MOHAMMAD SARFARAZUL HASSAN , Financial Analyst , Spectra Support Services

if current asset increase   then working capital increase

if current assret decrease then working capital decrease

 

if current liabilities  increase the working capital  decrease

if current liability  decrease then working  capital increaese

 

 

hennce asnwer  D. lncreased by $,0.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.