Question

Consider the following abbreviated financial statements for Cabo Wabo, Inc.:

CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019
		2018		2019			2018		2019
Assets					Liabilities and Owners’ Equity
Current assets	$	2,989	$	3,169	Current liabilities	$	1,291	$	1,898
Net fixed assets		13,862		14,493	Long-term debt		7,161		8,221

CABO WABO, INC. 2019 Income Statement
Sales	$	44,730
Costs		22,432
Depreciation		3,777
Interest paid		1,032

a.	What is owners’ equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
b.	What is the change in net working capital for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
c.	In 2019, the company purchased $7,876 in new fixed assets. The tax rate is 22 percent. How much in fixed assets did the company sell? What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
d.	During 2019, the company raised $2,371 in new long-term debt. What is the cash flow to creditors? How much long-term debt must the company have paid off during the year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

	a. 2018 Owners' equity 2019 Owners' equity b. Change in NWC c. Fixed assets sold Cash flow from assets d. Cash flow to creditors Debt retired

Answer 1