1. Assume the book value of an item of equipment shows $50,000 in year one and $44,000 in year two. Would the $6,000 difference be treated as an inflow source, outflow use, or not shown at all with regard to its effect on working capital?

 2. A review of a balance sheet indicated the beginning and ending totals of current assets and current liabilities for a one-year operating period. Determine the working capital at the beginning and the end of the year. Calculate the change in current assets, current liabilities, and working capital.