Question
Southeastern IT Systems has the following balance sheet and the income statement. Make sure the unit is in million dollars. (unit: $ in millions) Southeastern
Southeastern IT Systems has the following balance sheet and the income statement. Make sure the unit is in million dollars.
(unit: $ in millions)
Southeastern IT Systems Balance Sheets | |||||
| 2013 | 2014 |
| 2013 | 2014 |
Cash | $1,000 | $1,200 | Accounts payable | $800 | $850 |
Accounts receivable | 6,500 | 7,500 | Notes payable | 7,500 | 8,000 |
Inventory | 1,500 | 2,000 | Current liabilities | 8,300 | 8,850 |
Current assets | 9,000 | 10,700 | Long-term debt | 1,000 | 1,000 |
Net fixed assets | 3,000 | 3,500 | Common equity | 500 | 500 |
|
|
| Retained earnings | 2,200 | 3,850 |
Total Assets | $12,000 | $14,200 | Total Liabilities & Owners Equity | $12,000 | $14,200 |
Income Statement | |
| 2014 |
Net sales | $15,000 |
Cost of goods sold | 10,000 |
Depreciation | 700 |
EBIT | 4,300 |
Interest expenses | 400 |
Taxable income | 3,900 |
Taxes | 1,365 |
Net income | $2,535 |
Dividends | ( ) |
What is the change in net working capital (NWC) from 2013 to 2014?
$700 | ||
$1,150 | ||
$1,850 | ||
$2,200 |
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