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Rousey, Inc., had a cash flow to creditors of $16,875 and a cash flow to stockholders of $7,433 over the past year. The company also had net fixed assets of $49,655 at the beginning of the year and $57,070 at the end of the year. Additionally, the company had a depreciation expense of $12,204 and an operating cash flow of $51,002. What was the change in net working capital during the year?

Answer :

Answer:

$ 7075

Explanation:

total cash flow to creditors and stockholders = $16,875 + $7,433 =  $ 24308

change in net asset and depreciation

$57,070 -  $49,655 + $12,204  = $ 19619

change in net working capital during the year = $51,002 - $ 24308 - $ 19619 = $ 7075

batolisis

Answer:

$7075

Explanation:

cash flow to creditors = $16875

cash flow to stockholders = $7,433

therefore total cash flow = Cash flow to creditors + cash flow to stockholders = $16875 + $7433 = $24308

Net fixed asset at the beginning of the year = $49655

Net fixed asset at the end of the year = $57070

change in net asset and depreciation

($57,070 -  $49,655) + $12,204  = $ 19619

Operating cash flow = $51002

To calculate the change in net working capital during the year will be

= operating cash flow - Total cash flow - change in net asset and depreciation

= $51,002 - $ 24308 - $ 19619 = $7075

hence the change in net working capital during the financial year will be $7075

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