Firm CDE had Total Fixed Assets, Current Assets and Current Liabilities for this year and last year as shown below.

This year Last year

Total Fixed Assets $33,000,000 $27,000,000

Current Assets $5,000,000 $3,500,000

Current Liabilities $3,000,000 $2,000,000

Firm CDE had the following values for EBIT, Taxes and Depreciation for this year.

This year

EBIT $23,000,000

Taxes $8,000,000

Depreciation* $3,000,000

*Assume that Depreciation is a capital expenditure.

Firm CDEs Working Capital Spending is:

	a.	$2,000,000
	b.	$500,000
	c.	$1,500,000
	d.	$1,000,000