Canyon Tours showed the following components of working capital last year: Beginning of Year Accounts receivable Inventory Accounts payable $ 24,000 12,000 14,500 End of Year $ 23,000 12,500 16,500 a. What was the change in net working capital during the year? Note: A negative amount should be indicated by a minus sign. Change in net working capital Cash flow b. If sales were $36,000 and costs were $24,000, what was cash flow for the year? Ignore taxes.

Canyon Tours showed the following components of working capital last year: Beginning of Year Accounts receivable Inventory Accounts payable $ 24,000 12,000 14,500 End of Year $ 23,000 12,500 16,500 a. What was the change in net working capital during the year? Note: A negative amount should be indicated by a minus sign. Change in net working capital Cash flow b. If sales were $36,000 and costs were $24,000, what was cash flow for the year? Ignore taxes.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Canyon Tours showed the following components of working capital last year:
Beginning of
Year
$ 24,000
12,000
14,500
Accounts receivable
Inventory
Accounts payable
a. What was the change in net working capital during the year?
Note: A negative amount should be indicated by a minus sign.
Change in net working capital
End of Year
$ 23,000
12,500
16,500
b. If sales were $36,000 and costs were $24,000, what was cash flow for the year? Ignore taxes.
Cash flow

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Step 2: Computation of Change in Net Working Capital -

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