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babcock inc provides you with the following information on its 2018 income statement: sales=317000; cost =211400;...

babcock inc provides you with the following information on its 2018 income statement: sales=317000; cost =211400; other expenses = 18500; depreciation =expense= 31200; interest expense= 2100; taxes = 18600; dividends; 12000. In addition, you're told that the firm issued 4500 in new equity in 2018, and redeemed 6500 in outstanding long-term debt. if net fixed assets increased by 7400 during the year, what was the addition to net working captial?

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Answer #1
Operating cash flows
Sales 317000
Less; Cost 211400
Lless: Other expenses 18500
Less: Taxes 18600
Operating cashflows 68500
Cashflow to creditors
Repayment of LTD 6500
Interest payment 2100
Cashflow to creditors 8600
Cashflow to Stockholder:
Issue of shares -4500
Div idend paid 12000
Cashflow to Stockholder: 7500
Free cash flows = Cashflows to Creditors + Cashflows to Stockholders
8600+7500 = 16100
Free cashflows = Operating cashflows- Capital flows - Net addition to WC
16100 = 68500-(7400+31200) - Net addition to WC
Net addition to WC= 13800
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