Gregory Mining LLC shows the following information on its 2014 income statement:
ID: 2784422 • Letter: G
Question
Gregory Mining LLC shows the following information on its 2014 income statement: sales = $317,800; costs = $211,400; other expenses = $18,500; depreciation expense = $31,200; interest expense = $2,100; taxes = $18,600; dividends = $12,000. In addition, you're told that the firm issued $4,500 in new equity during 2014, and redeemed $6,500 in outstanding long-term debt. If net fixed assets increased by $7,400 during the year, what was the addition to net working capital?
A. $17,900
B. $14,600
C. $15,800
D. $16,200
E. $17,400
Explanation / Answer
Answer B $14600.00
Addition to Net Working Capital
Sales $ 317800
Less Costs $ 211400
Other Expenses $ 18500
Depreciation Expenses $ 31200
Interest Expense $ 2100
Taxes $ 18600
Dividends $ 12000
$ 24000
Add Cost of new Equity
issued during 2014 $ 4500
$ 28500
Less Cost of Redemption $ 6500
of Long Term Debt $ 22000
Less Additions to $ 7400
Fixed Assets
Net Additions to Working
Capital $ 14600
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