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During the year company's current assets?

During the year company's current assets increased by $120,0, current liabilities decreased by $50,0, and net working capital a. Increased by70,0 b. Did not change c. Decreased by $170,0 d. Increased by $170,0

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Question added by Anayatullah Tahir , Finance Manager , Etqan Projects
Date Posted: 2014/04/17
Muhammad Zubair
by Muhammad Zubair , CFO / Chief Accountant , RH Group

correct answer is d. Increased by $170,0

Juanito Jr De Guzman
by Juanito Jr De Guzman , Chief Accountant , Zen FZE

d. Increased by $170 - Increase in Current Asset shows additional liquidity & decrease in Current liabilties resulting to positive liquidity ratio.

Srinivas Kotni ACA CMA
by Srinivas Kotni ACA CMA , Finance Controller , Ecolab

Option (d). Increased by $170,0

Sadiq ul Islam
by Sadiq ul Islam , Finance Manager , Bindawood Group of Companies

D Increase in NWC by............................

Increased by $170

As NWC = Current assets - current liabilites 

NWC increase by increasing current assets and decreasing current liabilities; means NWC = increase in current assets + decrease in current liabilities =120+50 =170 increase

ryad abdalla
by ryad abdalla , chief of accounts , Evntoo

answer dworking capital = libilities -assets

=-"-"answe d

Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

D; Increas by  $170

because

WC =CA-CL

suppose before

CA=100 , CL =60

Then ,

WC40=100-60

 

Now  CA100+120=220   ,  CL=60-50=10

new

WC210=220-10

Change in WC =210-40=170 Increases

Mohammed  Mohammed
by Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store

Increase by170 is the right answer

Atta Ur Rehman
by Atta Ur Rehman , Finance Business Partner , Emarat Aloula Group

As Working capital = Current assets - current liabilities

Hence it is increased by $170

Ezzidin Ibrahim
by Ezzidin Ibrahim , Financial Controller , Karim Food Industries

 d. Increased by $170 , assets increased, liabilities reduced.

gajendra singh
by gajendra singh , ACCOUNTS OFFICER , NK TEMPLES PVT. LTD.

deffinatly decrease by170

because imagine CL is100 and CA is100

so now CL decrease by50 and CA increase by120 so

 now CL would be50 only and CA would be220

 

now working capital = CA-CL

   so220-50=170 so workind capital would increase by170

(D) is right answer

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