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-   -   Net Working Capital (https://www.askmehelpdesk.com/showthread.php?t=118473)

  • Aug 10, 2007, 06:14 PM
    gypsy1952
    Net Working Capital
    Paying out a $2 million cash divident has what affect on working capital?
  • Aug 10, 2007, 06:24 PM
    nicespringgirl
    Net Working Capital=Assets-Liabilities
    When you pay out $2 million cash dividend, you credit cash and debit stockholder's equity-Retained Earnings
    Cash is under Assets, so you can see NWC decreased by $2 million.

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