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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

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