Question

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&E of $950
vi) Increase in accounts payable of $400

Answer 1

Answer:

-500 +800 -350 -225 +950 +400

Answer 2

Answer:

$175

Explanation:

The change in non-cash working capital that would appear on the cash flow statement is calculated as:      

Increase in accounts receivable                              -$800

Decrease in inventories                                             $350

Decrease in prepaid expenses                                  $225

Increase in accounts payable                                    $400                              

                                                                                   ______                    

Change in Non-Cash Working Capital  --)                  $175

Hope my answer is helpful ..