Question

Consider the following abbreviated financial statements for Barrie Enterprises:

BARRIE Enterprises 2017 and 2018 Partial Statement of Financial Position
Assets						Liabilities and Owner's Equity
		2017		2018			2017		2018
Current assets	$	938	$	1,014	Current liabilities	$	377	$	413
Net fixed assets		4,007		4,776	Long-term debt		2,111		2,249

BARRIE Enterprises 2018 Statement of Comprehensive Income
Sales	$	12,800
Costs		5,509
Depreciation		1,153
Interest paid		318

a. What is owner's equity for 2017 and 2018? (Omit $ sign in your response.)

Owner's equity 2017	$
Owner's equity 2018	$

b. What is the change in net working capital for 2018? (Omit $ sign in your response.)

Change in NWC           $

c1. In 2018, Barrie Enterprises purchased $2,022 in new fixed assets. How much in fixed assets did Barrie Enterprises sell? (Omit $ sign in your response.)

Fixed assets sold           $

c2. In 2018, Barrie Enterprises purchased $2,022 in new fixed assets. What is the cash flow from assets for the year? (The tax rate is 35%.) (Omit $ sign in your response.)

Cash flow from assets           $

d1. During 2018, Barrie Enterprises raised $402 in new long-term debt. How much long-term debt must Barrie Enterprises have paid off during the year? (Omit $ sign in your response.)

Debt retired           $

d2. During 2018, Barrie Enterprises raised $402 in new long-term debt. What is the cash flow to creditors? (Omit $ sign in your response.)

Cash flow to creditors           $

ReplyForward

Answer 1

A.		2017	2018
	Current Assets	938	1014
	Fixed assets	4007	4776
	Total Assets	4945	5790
	Current Liabilities	377	413
	Long term debt	2111	2249
	Owner's equity	2457	3128

B.	Change in a Net Working Capital = Change in Current Assets – Change in Current Liabilities	2017($)	2018($)	Difference between 2017 & 2018
	Current Assets	938	1014	76
	Current Liabilities	377	413	36
	Change in a Net Working Capital	40

C1.

Fixed assets sold = $100.
Fixed Assets Account
Particulars	($)	Particulars	($)
To opening balance	4007	By sale of asset(Balancing )	100
To additions	2022	By Depreciation	1153
		By Closing balance	4776
	6029		6029

C2	Cash flow from assets = ($1957)
	New fixed assets purchased = $2,022 (outflow of cash)
	Fixed assets sold = $ 65 ($100-35%),which is inflow of cash
	Net cash flow from assets = -2022+65= (1957)

D1	Debt retired= $264.
	Long terms debt Account
	Particulars	($)	Particulars	($)
			By opening balance	2111
	To Sale of debt(Balancing)	264
			By debt raised	402
	By Closing balance	2249
		2513		2513

D2	Cash flow to creditors = $ 84
	New long term debt raised = $402.(inflow of cash)
	Interest expense = $318 (outflow of cash)
	Net cash flow = 402-318