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Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The
Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $918,000 and total current liabilities of $631,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted. Accruals Account Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash Change + $44,000 0 - 10,000 +88,000 0 + 154,000 +17,000 a. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action. a. The change in net working capital is $ (Round to the nearest dollar.)
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