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alukav5142 [94]
3 years ago
6

Calculate Net New Borrowing using the following information: Dividends Paid 53,000 Net Capital Spending 22,000 Net New Equity Is

sued 29,000 Change in NWC 21,000 Operating Cash Flow 117,000 Interest Paid 60,000
Business
1 answer:
nadezda [96]3 years ago
8 0

Answer:

Net New Borrowing is 10,000

Explanation:

Cash available for capital spending  = Operating cash flow - Interest Paid - Dividends Paid -  Change in Net Working Capital + New Equity Issued

= 117,000 - 60,000 - 53,000 - 21,000 + 29,000

= 12,000

Net new borrowing = Net Capital Spending - Cash available for capital spending

= 22,000 - 12,000 = 10,000

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Answer:

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