Purchase Solution

Carl's Bail Bonds: Calculate change in net working capital and net cash flow.

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

Solution Summary

The solution walks through the methodology of computing the change in working capital and cash flows. It is mostly narrative explaining the concepts, but the amounts for the problem are also computed. Step by step calculations are given.

Solution Preview

Net working capital (NWC) is defined as the difference between current assets and current liabilities. Change in NWC, therefore, is NWC2 - NWC1.

In this problem, the only information we have is regarding accounts receivable, inventory, and ...

Purchase this Solution

Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.