The Accounts of Weston Inc

Multiple Choice

The accounts of Weston Inc.indicate the following changes in long-term assets and capital for the past year: (1) Fifty thousand (50,000) shares of common stock were sold at $25 per share.
(2) Two million dollars ($2 million) in bonds matured and were retired.
(3) Dividends of $1 million were paid.
(4) Net fixed assets declined by $200,000.
(5) Net income was calculated to be $2 million.
(6) Depreciation expense was $1.5 million.
What was the increase or decrease in net working capital?
(Hint: Changes in net fixed assets incorporate changes in both gross fixed assets and accumulated depreciation. )

A) +$450,000
B) −$250,000
C) −$1,950,000
D) +$1,950,000
E) +$3,300,000