For the current year sales are $1,400,000, current assets are $101,524, and current liabilities are $85,265. If sales are forecasted to increase 12% next year, and all current assets and current liabilities vary proportionally with sales (i.e. they are spontaneous items), what is the forecasted amount of net working capital next year?

The forecasted amount of net working capital next year is $18,210.08

Explanation:

Present Total working capital = Current assets - current liabilities

=$101,524 - $85,265

=$16,259

Hence if sales, Current Asset and all Current Liability increase by 14%, Working Capital next year would be = $16,259 * (1+12%)

=16,259 * (1+0.12)

=16,259 * (1.12)

=$18,210.08

the tone of the passage is serious!

Explanation:

Alice is clearly sharing how she feels about what's going on showing she is serious..