Question
2014 2013 2012 Total current assets. . . . . . . . $369,880 $332,250 $288,750 Total current liabilities. . . . . . $196,000
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| 2014 | 2013 | 2012 |
| Total current assets. . . . . . . . | $369,880 | $332,250 | $288,750 |
| Total current liabilities. . . . . . | $196,000 | $177,000 | $145,000 |
First calculate the amount of working capital each year.
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|
|
| 2014 |
| 2013 |
| 2012 |
| Total current assets |
|
| |||||
| Less: | Total current liabilities |
|
| ||||
| Working capital |
| ||||||
Next determine the formula, then calculate the percentage of change in working capital in
2014 and 2013.
(Round the percentage to the nearest tenth percent.)
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|
|
|
|
| Percentage of change |
|
|
| Dollar amount of change | / | Base year amount | = | in working capital |
|
| 2014 |
| % |
| 2013 |
| % |
Finally based on what you have calculated above, determine whether the trend is favorable or unfavorable.
The ____________ trend of working capital is ______________
.
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Auditing Fundamentals In A South African Context
Authors: Gerrit Penning, Rika Butler, Pieter Von Wielligh, Frans Prinsloo
2nd Edition
0190749040, 978-0190749040
