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Paragraph Styles Weiland Co. shows the following information on its 2016 income statement: sales $155,500; costs $81,400; other expenses $4,700; depreciation expense $10,400; interest expense - $7,900; taxes $17,885; dividends $7,450. In addition, youre told that the firm issued $3,100 in new equity during 2016 and redeemed $4,900 in outstanding long-term debt. d. If net fixed assets increased by $20,500 during the year, what was the addition to NWC?
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d) If net fixed assets increased by S20,500 during the year, what was the addition to NWC? Cash flow from assets Cash flow to creditors + Cash flow to stockholders - $12,800 $4,350 -$17,150 Net capital spending- Depreciation Increase in fixed assets - $10,400$20,500 -$30,900 Change in NWC- Operating cash flow - Net capital spending - Cash flow from assets - $51,515 $30,900 $17,150 -S3,465 Workings: Income Statement: Sales Less: Costs $1,55,500 $81,400 $4,700 Other expenses EBIT Less: Interest expense Taxable Income Less: Taxes Net Income Depreciation expense $10,400 S96,500 $59,000 $7,900 $51,100 $17,885 $33,215 Net Income = Dividends Addition to retained earnings Dividends Addition to retained earnings $25,765 $7,450 EBIT +Depreciation - Taxes - $59,000 $10,400 $17,88:5 -$51,515 Operating cash flow: Interest paid - Net new borrowing = $7,900-($4,900) - $12,800 Cash flow to creditors Dividends paid - Net new $7,450 $3,100 Cash flow to stockholders $4,350

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