Data for Research Enterprises follows:

	2019	2018	2017
Total current assets	\(490,000	\)320,000	\(230,000
Total current liabilities	\)235,000	\(160,000	\)115,000

Compute the dollar amount of change and the percentage of change in Research Enterprises’ working capital each year during 2019 and 2018. What do the calculated changes indicate?

$\begin{array}{c}\mathrm{Working}\mathrm{capital}\mathrm{of}2019=\mathrm{Total}\mathrm{current}\mathrm{Assets}-\mathrm{Total}\mathrm{current}\mathrm{liabilities}\\ =\mathrm{\$}490,000-\mathrm{\$}235,000\\ =\mathrm{\$}255,000\end{array}$

$\begin{array}{c}\mathrm{Working}\mathrm{capital}\mathrm{of}2018=\mathrm{Total}\mathrm{current}\mathrm{Assets}-\mathrm{Total}\mathrm{current}\mathrm{liabilities}\\ =\mathrm{\$}320,000-\mathrm{\$}160,000\\ =\mathrm{\$}160,000\end{array}$

$\begin{array}{c}\mathrm{Working}\mathrm{capital}\mathrm{of}2017=\mathrm{Total}\mathrm{current}\mathrm{Assets}-\mathrm{Total}\mathrm{current}\mathrm{liabilities}\\ =\mathrm{\$}230,000-\mathrm{\$}115,000\\ =\mathrm{\$}115,000\end{array}$

$\begin{array}{c}\mathrm{Change}2019=\mathrm{Current}\mathrm{year}\mathrm{working}\mathrm{capital}-\mathrm{Last}\mathrm{year}\mathrm{working}\mathrm{capital}\\ =\$255,000-\$160,000\\ =\mathrm{\$}95,000\end{array}$

$\begin{array}{c}\mathrm{Change}2018=\mathrm{Current}\mathrm{year}\mathrm{working}\mathrm{capital}-\mathrm{Last}\mathrm{year}\mathrm{working}\mathrm{capital}\\ =\$160,000-\$115,000\\ =\mathrm{\$}45,000\end{array}$

$\begin{array}{c}\mathrm{Percentage}\mathrm{Change}\mathrm{in}2019=\left(\frac{\mathrm{Change}\mathrm{in}\mathrm{working}\mathrm{capital}}{\mathrm{Last}\mathrm{year}\mathrm{working}\mathrm{capital}}\right)\times 100\\ =\left(\frac{\$95,000}{\$160,000}\right)\times 100\\ =59.38\mathrm{\%}\end{array}$

$\begin{array}{c}\mathrm{Percentage}\mathrm{Change}\mathrm{in}2018=\left(\frac{\mathrm{Change}\mathrm{in}\mathrm{working}\mathrm{capital}}{\mathrm{Last}\mathrm{year}\mathrm{working}\mathrm{capital}}\right)\times 100\\ =\left(\frac{\$45,000}{\$115,000}\right)\times 100\\ =39.13\mathrm{\%}\end{array}$

The change in working capital is increasing which means the company is expanding their operations so the working capital of the company is increasing.