Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The accounts of Weston Inc. indicate the following changes in long-term assets and capital for the past year: (1) Fifty thousand (50,000) shares of common
The accounts of Weston Inc. indicate the following changes in long-term assets and capital for the past year:
(1) | Fifty thousand (50,000) shares of common stock were sold at $25 per share. |
(2) | Two million dollars ($2 million) in bonds matured and were retired. |
(3) | Dividends of $1 million were paid. |
(4) | Net fixed assets declined by $300,000. |
(5) | Net income was calculated to be $2 million. |
(6) | Depreciation expense was $1.5 million. |
What was the increase or decrease in net working capital? (Hint: Changes in net fixed assets incorporate changes in both gross fixed assets and accumulated depreciation.)
a. | +$550,000 | |
b. | +$3,300,000 | |
c. | +$1,950,000 | |
d. | +$450,000 | |
e. | $1,950,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started