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:

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