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Randy Jackson owns a pet shop in nearby St. Louis, MO where he sells puppies to aspiring recording artists. Randy's pet shop, Dawg Town, Inc,
Randy Jackson owns a pet shop in nearby St. Louis, MO where he sells puppies to aspiring recording artists. Randy's pet shop, Dawg Town, Inc, showed the following information on its 2021 income statement: Sales of $196,000 Costs of $104,000 Other Expenses of $6,800 Depreciation Expense of $9,100 Interest Expense of $14,800 Taxes of $21,455 Dividends of $10,400 To capitalize on his recent success, Randy expanded Dawg Town, Inc in 2021. In doing so, the balance of net fixed assets increased by $42,656. To finance this, they issued $5,700 in new equity and $7,300 in long-term debt. What was the change in net working capital during 2021 for Dawg Town, Inc? Hint: You will have to use the cash flow identity to find the components of cash flow from assets
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