Randy Jackson owns a pet shop in nearby St. Louis, MO where he sells puppies to aspiring recording artists. Randys pet shop,DawgTown, Inc, showed the
Randy Jackson owns a pet shop in nearby St. Louis, MO where he sells puppies to aspiring recording artists. Randys pet shop,DawgTown, Inc, showed the following information on its 2015 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 expandedDawgTown, Inc in 2015. In doing so, the balance of net fixed assets increased by $42,705. 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 2015 forDawgTown, Inc? Hint: You will have to use the cash flow identity to find the components of cash flow from assets
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