Answer :
Final answer:
The operating working capital for Year 1 is $2,978.1 and for Year 2 is $2,862.0. The change in operating working capital between the two years represents a cash outflow of $116.1 to the company.
Explanation:
To calculate the operating working capital for both years, we need to subtract the total current liabilities from the total current assets for each year.
Year 1:
Total current assets for Year 1: $1,965.0 + $4,990.7 + $425.7 + $380.6 + $257.4 + $101.2 = $8,120.6
Total current liabilities for Year 1: $3,768.6 + $1,051.6 + $322.3 = $5,142.5
Operating working capital for Year 1: $8,120.6 - $5,142.5 = $2,978.1
Year 2:
Total current assets for Year 2: $1,987.2 + $4,537.0 + $387.0 + $346.4 + $234.0 + $92.1 = $7,583.7
Total current liabilities for Year 2: $3,426.0 + $1,002.7 + $293.0 = $4,721.7
Operating working capital for Year 2: $7,583.7 - $4,721.7 = $2,862.0
The change in operating working capital between the two years is calculated by subtracting the operating working capital for Year 1 from the operating working capital for Year 2: $2,862.0 - $2,978.1 = -$116.1
Since the change in operating working capital is negative (-$116.1), it represents a cash outflow to the company.
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