Woodlands Inc.

$2015$ Income Statement

$($$ in millions$)$

Total operating revenues $$3,806$

Cost of goods sold $2,315$

Selling, general, and administrative expenses $546$

Depreciation $311$

Earnings before interest and taxes $($EBIT$)$ $$634$

Interest expense $170$

Pretax income $$464$

Taxes $162$

Net income $$302$

Dividends $75$

Woodlands Inc.

Balance Sheet

$($$ in millions$)$

Assets $20152014$ Liabilities and Stockholders$$ Equity $20152014$

Cash and equivalents $ $503$ $ $227$ Accounts payable $ $686$ $ $613$

Accounts receivable $418522$ Long$-$term debt $1,3001,350$

Inventory $1,2391,187$ Common stock $1,5001,500$

Net property & equipment $2,2902,264$ Capital surplus $745745$

Intangible assets $360360$ Retained earnings $579352$

Total assets $ $4810$ $$4,560$ Total liabilities & stockholders$$ equity $$4,810$ $$4,560$

$2.$ What is the amount of the net capital spending for $2015?$

$$$$29$ million

$$1,66$ million

$$285$ million

$$337$ million

$$26$ million