**Question:**The 2017 balance sheet of Dream, Inc., showed current assets of $1,320 and current liabilities of $840. The 2018 balance sheet showed current assets of $1,760 and current liabilities of $1,140. What was the company’s 2018 change in net working capital, or NWC?**Options:**- A. $740- B. -$740- C. $114- D. $140The correct answer is **D. $140**.**Explanation:**Net Working Capital (NWC) is calculated as the difference between current assets and current liabilities.For 2017:- NWC = Current Assets (2017) - Current Liabilities (2017)- NWC = $1,320 - $840 = $480For 2018:- NWC = Current Assets (2018) - Current Liabilities (2018)- NWC = $1,760 - $1,140 = $620Change in NWC from 2017 to 2018:- Change in NWC = NWC (2018) - NWC (2017)- Change in NWC = $620 - $480 = $140Thus, the company's change in net working capital for 2018 is $140.

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Description: **Question:**The 2017 balance sheet of Dream, Inc., showed current assets of $1,320 and current liabilities of $840. The 2018 balance sheet showed current assets of $1,760 and current liabilities of $1,140. What was the company’s 2018 change in net

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The 2017 balance sheet of Dream, Inc., showed current assets of $1,320 and current liabilities of $840. The 2018 balance sheet showed current assets of $1,760 and current liabilities of $1,140. What was the company's 2018 change in net working capital, or NWC? O A. $740 OB. $-740 O C. $114 D. $140

The 2017 balance sheet of Dream, Inc., showed current assets of $1,320 and current liabilities of $840. The 2018 balance sheet showed current assets of $1,760 and current liabilities of $1,140. What was the company's 2018 change in net working capital, or NWC? O A. $740 OB. $-740 O C. $114 D. $140

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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