👤
Answered

What is the net change in non-cash working capital that would appear on the cash flow statement given the following: i) Increase in cash of $500 ii) Increase in accounts receivables of $800 ii) Decrease in inventories of $350 iv) Decrease in prepaid expenses of $225 v) Increase in PP

Answer :

Parraingo

Based on the cash and noncash transactions, the net change in non-cash working capital would be -$325.

How would the non-cash working capital change?

This can be found as:

= Increase in accounts receivables - Decrease in inventories - Decrease in prepaid expenses - Increase in PPE + Increase in accounts payable

Solving gives:

= 800 - 350 - 225 - 950 + 400

= -$325

The rest of the question is:

v) Increase in PP&E of $950

vi) Increase in accounts payable of $400

Find out more on net working capital at https://brainly.com/question/26214959.

#SPJ1

Go Teaching: Other Questions