Carl's Bail Bonds: Calculate change in net working capital and net cash flow.
Please help with the following problem regarding working capital management.
Last year, Carl's Bail Bonds reported sales of $58,200 and costs of $22,700. The following information was also reported for the same period:
Beginning Accounts Receivable: $24,880
Ending Accounts Receivable: $21,520
Beginning Inventory: 4,270
Ending Inventory: 6,512
Beginning Accts Payable: 40,680
Ending Accts Payable: 44,540
Based on this information, what was Carl's change in net working capital for last year? What was the net cash flow?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/carls-bail-bonds-calculate-change-in-net-working-capital-and-net-cash-flow-2om
... payable, so we have to assume these are the only components of Carl's current assets and liabilities.
Note: Accounts Receivable and Inventory are current assets.
Accounts Payable is a current liability.
So, we have: