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The following information was obtained from XYZ Corporation: EBIT Interest Depreciation Dividends 2020 $400,000 $100,000 $200,000 $110,000 2019 $1,200,000 2020 $1,200,000 Long-term debt Capital spending
The following information was obtained from XYZ Corporation: EBIT Interest Depreciation Dividends 2020 $400,000 $100,000 $200,000 $110,000 2019 $1,200,000 2020 $1,200,000 Long-term debt Capital spending was $300,000 in 2020. The net new equity issuance was $100,000 in 2020. The applicable tax rate was 30% in year 2020. Calculate the change in net working capital for 2020. Show your calculation. (Hint: Income taxes = Income before taxes x Tax rate)
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