(PLEASE DEFINE THE FORMULA AND SHOW YOUR WORK) (PLEASE DEFINE THE FORMULA AND SH
ID: 2813175 • Letter: #
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(PLEASE DEFINE THE FORMULA AND SHOW YOUR WORK)
(PLEASE DEFINE THE FORMULA AND SHOW YOUR WORK)
12) The December 31, 2001, balance sheet of Venus's Tennis Shop, Inc., showed current assets of $1,200 and current liabilities of S720. The December 31,2002, balance sheet showed current assets of $1,440 and current liabilities of $525. What was the company's 2002 change in net working capital, or NWC? 13) Given the following info the Soprano Pizza Co., calculate the depreciation expense: sales $21,000; costs - S10,000; addition to retained earnings - $4,000; dividends paid- S800, interest expense-$1,200, tax rate-35%.Explanation / Answer
12.
Working Capital on December 31, 2001 = Current Assets in 2001 - Current Liabilities in 2001
= $1,200 - $720
= $480
Working Capital on December 31, 2001 is $480.
Working Capital on December 31, 2002 = Current Assets in 2002 - Current Liabilities in 2002
= $1,440 - $525
= $915
Working Capital on December 31, 2002 is $915.
Change in working capital = Working capital in 2002 - Working capital in 2001
= $915 - $480
= $435
Change in working capital is $435.
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