In: Finance
Consider the following abbreviated financial statements for Cabo
Wabo, Inc.:
CABO WABO, INC. Partial Balance Sheets as of December 31, 2015 and 2016 |
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2015 | 2016 | 2015 | 2016 | ||||||
Assets | Liabilities and Owners’ Equity | ||||||||
Current assets | $ | 2,745 | $ | 2,884 | Current liabilities | $ | 1,111 | $ | 1,661 |
Net fixed assets | 12,495 | 13,047 | Long-term debt | 6,609 | 7,822 | ||||
CABO WABO, INC. 2016 Income Statement |
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Sales | $ | 40,070 |
Costs | 20,074 | |
Depreciation | 3,437 | |
Interest paid | 654 | |
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 $5,866 in new fixed assets. The tax rate is 40 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 $1,840 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?