At the beginning of the year, a firm has current assets of $325 and current liabilities of $229. At the end of the year, the current assets are $487 and the current liabilities are $269. What is the change in net working capital?

$122

Explanation:

Current assets at the beginning of the year = $325

Current assets at the end of the year = $487

Change in current assets:

= $487 - $325

= $162

Current liabilities at the beginning of the year = $229

Current liabilities at the end of the year = $269

Change in current liabilities:

= $269 - $229

= $40

Change in net working capital:

= Change in current assets - Change in current liabilities

= $162 - $40

= $122

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