Question

Consider the following abbreviated financial statements for Parrothead Enterprises:

   

PARROTHEAD ENTERPRISES 2017 and 2018 Partial Balance Sheets
Assets								Liabilities and Owners’ Equity
		2017			2018					2017			2018
Current assets	$	1,266		$	1,387			Current liabilities	$	552		$	601
Net fixed assets		5,043			6,098			Long-term debt		2,738			2,915

  

PARROTHEAD ENTERPRISES 2018 Income Statement
Sales	$	15,778
Costs		7,225
Depreciation		1,423
Interest paid		428

  

a.	What is owners' equity for 2017 and 2018? (Do not round intermediate calculations.)
b.	What is the change in net working capital for 2018? (Do not round intermediate calculations.)
c-1.	In 2018, Parrothead Enterprises purchased $2,616 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? (Do not round intermediate calculations.)
c-2.	In 2018, Parrothead Enterprises purchased $2,616 in new fixed assets. What is the cash flow from assets for the year? The tax rate is 22 percent. (Do not round intermediate calculations.)
d-1.	During 2018, Parrothead Enterprises raised $554 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? (Do not round intermediate calculations.)
d-2.	During 2018, Parrothead Enterprises raised $554 in new long-term debt. What is the cash flow to creditors? (Do not round intermediate calculations.)

a.Owners' equity 2017

Owners' equity 2018

b.Change in NW

Cc-1.Fixed assets sold

c-2.Cash flow from assets

d-1.Debt retired

d-2.Cash flow to creditors

Answer 1