Question

Answer please the Question Below Types - Not a Hand Writing please With explanation

3.From the following balance sheet accounts: a. Construct a balance sheet for 2018 and 2019 b. list all the working capital accounts c. find the net working capital for the years ending 2018 and 2019 d. calculate the change in net working capital for the year 2019 Balance Sheet Accounts of Athens Corporation (AED million) Account Balance 12/31/2018 Balance 12/31/2019 Accumulated Depreciation 8 10 Accounts Payable 20 30 Accounts Receivable 30 30 Cash 8 10 Common Stock 75 80 Inventory 70 100 Long-Term Debt 40 50 Plant. Property & Equipment 55 60 Retained Earings 20 30

Answer 1

Solution:
a.	Balancesheet for 2018 and 2019
			(AED Million)
	Particulars	12/31/2018	12/31/2019
	Current Assets
	Cash	8	10
	Accounts receivable	30	30
	Inventory	70	100
	Non- current Assets
	Plant , property and equipement	55	60
	Less:Accumulated Depreciation	-8	-10
	Total Assets	155	190
	Current Liabilities
	Accounts Payable	20	30
	Non- current Liabilities
	Long term debt	40	50
	Common Stock	75	80
	Retained Earnings	20	30
	Total liabilities and Equity	155	190
b.	Working capital is difference between current assets and Current liabilities
	It is also Called as Net working Capital.
	Working capital accounts used here are Cash , Accounts receivable, inventories
	and Accounts payable
c.	Net working capital Year ending 2018 and 2019
			(AED Million)
	Particulars	2018	2019
	Current Assets
	Cash	8	10
	Accounts receivable	30	30
	Inventory	70	100
	Total Current assets (A)	108	140
	Current Liabilities
	Accounts payable	20	30
	Total Current Liabilities (B)
	Net working capital (A-B)	88	110
d.	Change in net working capital in the year is (110- 88) = 22 AED million.
	Its means there is increase in Net working capital in 2019.
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