In: Finance
The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $6.4 million, and the 2015 balance sheet showed long-term debt of $6.65 million. The 2015 income statement showed an interest expense of $225,000. The 2014 balance sheet showed $630,000 in the common stock account and $4.9 million in the additional paid-in surplus account. The 2015 balance sheet showed $670,000 and $5.4 million in the same two accounts, respectively. The company paid out $620,000 in cash dividends during 2015. Suppose you also know that the firm’s net capital spending for 2015 was $1,490,000, and that the firm reduced its net working capital investment by $93,000.