Data for Research Enterprises follows:
Total current assets
Total current liabilities
Compute the dollar amount of change and the percentage of change in Research Enterprises’ working capital each year during 2019 and 2018. What do the calculated changes indicate?
The change in working capital in 2019 is $95,000 and in 2018 is $45,000. The percentage change in working capital in 2019 is 59.38% and in 2018 39.13%
The change in working capital is increasing which means the company is expanding their operations so the working capital of the company is increasing.
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