At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509. at the end of the year, the current assets were $122,418 and the current liabilities were $103,718. what is the change in net working capital?

change in net working capital = $21,903

Explanation:

given data

beginning current assets = $121,306

beginning current liabilities = $124,509

end of the year current assets = $122,418

end of the year current liabilities = $103,718

solution

we get here working capital at beginning that is express as

working capital = Current assets - current liabilities    1

put here value we get

working capital = $121,306 - $124,509  

working capital = -$3203  

and now we get here working capital for end of year that is

working capital = Current assets - current liabilities    2

working capital = $122,418 - $103,718

working capital =  $18,700

so now we can get change in net working capital that is difference between   beginning and ending working capital

change in net working capital = $18,700  - (-$3,203)

change in net working capital = $21,903

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.