Question

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

CABO WABO, INC. Partial Balance Sheets as of December 31, 2015 and 2016
		2015		2016			2015		2016
Assets					Liabilities and Owners’ Equity
Current assets	$	2,769	$	2,902	Current liabilities	$	1,099	$	1,652
Net fixed assets		12,537		13,086	Long-term debt		6,570		7,810

CABO WABO, INC. 2016 Income Statement
Sales	$	40,130
Costs		20,098
Depreciation		3,458
Interest paid		663

a. What is owners’ equity for 2015 and 2016? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
  

	Owners’ equity
2015	$
2016	$

b. What is the change in net working capital for 2016? (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.)
  
Change in net working capital            $

c. In 2016, the company purchased $5,941 in new fixed assets. The tax rate is 30 percent.

1. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Fixed assets sold            $

2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow from assets            $

d. During 2016, the company raised $1,885 in new long-term debt.

1. What is the cash flow to creditors? (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.)

Cash flow to creditors            $

2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Debt retired            $

Answer 1