Questions: Analyze the change in current assets from 2020 to 2021: Current Assets 2021 Current Assets 2020 40 31 146 131 209 190 total: 395 Total: 352 current Liabilities 2021 Current liabilities 2020 35 34 90 79 73 65 total: 198 Total: 178

To analyze the change in current assets from 2020 to 2021, we need to compare the values provided for each year and calculate the differences. Here is a step-by-step breakdown:

1. Individual Current Assets Comparison:

   • First Asset:
     • 2021: $40
     • 2020: $31
     • Change: $40 - $31 = $9 increase
   • Second Asset:
     • 2021: $146
     • 2020: $131
     • Change: $146 - $131 = $15 increase
   • Third Asset:
     • 2021: $209
     • 2020: $190
     • Change: $209 - $190 = $19 increase

2. Total Current Assets Comparison:

   • Total for 2021: $395
   • Total for 2020: $352
   • Change in Total Current Assets: $395 - $352 = $43 increase

3. Percentage Change in Total Current Assets:

   • To find the percentage change, use the formula: \[ \text{Percentage Change} = \left( \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \right) \times 100 \]
   • Applying the values: \[ \text{Percentage Change} = \left( \frac{395 - 352}{352} \right) \times 100 \approx 12.22\% \]

4. Current Liabilities Comparison:

   • Total for 2021: $198
   • Total for 2020: $178
   • Change in Total Current Liabilities: $198 - $178 = $20 increase

5. Net Working Capital (NWC) Comparison:

   • NWC for 2021: Total Current Assets - Total Current Liabilities = $395 - $198 = $197
   • NWC for 2020: Total Current Assets - Total Current Liabilities = $352 - $178 = $174
   • Change in NWC: $197 - $174 = $23 increase

Summary:

• The total current assets increased by $43 from 2020 to 2021, which is approximately a 12.22% increase.
• The total current liabilities increased by $20 during the same period.
• The net working capital, which is a measure of a company's short-term financial health, increased by $23.

This analysis shows that the company improved its liquidity position from 2020 to 2021, as evidenced by the increase in both current assets and net working capital.