Mr. Rodney's region reported to headquarters that its NWC was $1547 at the end of 2000, $633 at the end of 2001, and $1294 at the end of 2002. How much was its NWC investment?
Please use this NWC formula:
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First and foremost,
NWC = Current Assests - Current Liablities
NWC represents the net money invested by the company in Working Capital (as opposed to Fixed Capital).
Current Assets = Inventory + Account Receivable (+ a few more ...
The expert examines net working capital headquarters. The NWC investments are analyzed.