Working Capital Changes from Two Balance Sheets: the Sign Logic
This lesson is part of the course
In this lesson
You compare Fenmoor Outdoor Co.'s balance sheets at 31 Dec 2025 and 2026, turn each working capital change into its cash effect with the right sign and finish operating cash flow.
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Lessons in this course
- Classifying Cash Flows: Operating, Investing or Financing? Locked
- The Indirect Method: From Net Income to Cash, Non-Cash Items First Locked
- Working Capital Changes from Two Balance Sheets: the Sign Logic Locked
- Investing Activities from the PP&E Roll-Forward: Capex, Disposals and Gains Locked
- Financing Activities: Debt, Dividends and Share Buybacks Locked
- The Direct Method and Its Reconciliation to the Indirect Method Locked
- Free Cash Flow: FCF, FCFF, FCFE and Cash Conversion Locked
- Cash Flow Quality: CFO/Net Income, the Accrual Ratio and a Bridge Chart Locked