Question

Consider the following abbreviated financial statements for Parrothead Enterprises:

   

PARROTHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets
Assets								Liabilities and Owners’ Equity
		2014			2015					2014			2015
Current assets	$	950		$	1,016			Current liabilities	$	385		$	416
Net fixed assets		3,967			4,608			Long-term debt		2,035			2,207

  

PARROTHEAD ENTERPRISES 2015 Income Statement
Sales	$	12,530
Costs		5,990
Depreciation		1,080
Interest paid		200

  

a.	What is owners' equity for 2014 and 2015? (Do not round intermediate calculations.)

  

Owners' equity 2014	$
Owners' equity 2015	$

b.	What is the change in net working capital for 2015? (Do not round intermediate calculations.)

  

Change in NWC

$

  

c-1	In 2015, Parrothead Enterprises purchased $1,885 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? (Do not round intermediate calculations.)

  

Fixed assets sold

$

c-2	In 2015, Parrothead Enterprises purchased $1,885 in new fixed assets. What is the cash flow from assets for the year? (The tax rate is 35 percent.) (Do not round intermediate calculations.)

Cash flow from assets

$

  

d-1	During 2015, Parrothead Enterprises raised $410 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? (Do not round intermediate calculations.)

  

Debt retired

$

d-2	During 2015, Parrothead Enterprises raised $410 in new long-term debt. What is the cash flow to creditors? (Do not round intermediate calculations.)

  

Cash flow to creditors

$

Answer 1