Answer:
Net working capital addition was for 8,108 dollars
Explanation:
To solve for NWC we start form the accounting equation and then, we expand it to get the NWC expression:
Assets = Liabilies + Equity
we expend the formula
current assets + fixed assets = current liabliies + non-currnet liab + stock + RE
NWC = net working capital
being: current assets - current liabilities
(current assets - current liabilities) = non-currnet liab + stock + RE - fixed assets
NWC = -3,283 + 5,629 + RE - 24,154
We need to solve fotr the change in Retained Earnings:
which is net income - dividends:
sales 316,547
costs (219,406)
other expenses (8,481)
depreciation expense (18,633)
interest expense (14,216)
taxes (15,217)
net income 40,594
dividends (10,678)
change in RE 29,916
NWC = -3,283 + 5,629 + 29,916 - 24,154
NWC = 8,108
