Response to the following problem:
Canyon Tours showed the following components of working capital last year:
Beginning End of Year
Accounts receivable $27,800 $24,900
Inventory 13,900 16,300
Accounts payable 16,400 20,300
a. What was the change in net working capital during the year? (Negative amount should be indicated by a minus sign.)
b. If sales were $37,900 and costs were $25,900, what was cash flow for the year? Ignore taxes.