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	$	3,061	$	3,257	Current liabilities	$	1,339	$	1,978
Net fixed assets		13,950		14,501	Long-term debt		7,257		8,309

CABO WABO, INC. 2019 Income Statement
Sales	$	44,850
Costs		22,472
Depreciation		3,825
Interest paid		1,015

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-1.	In 2019, the company purchased $7,948 in new fixed assets. The tax rate is 23 percent. 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.)
c-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.)
d-1.	During 2019, the company raised $2,419 in new long-term debt. 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.)
d-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.)

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

NPV, IRR, PBP,OCF, IN DEX - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins Σ AutoSum - Cut AC Wrap Text Calibri 11 General E Copy Fill в IU- Merge & Center Conditional Format Formatting as Table Styles Paste $ % , +.0 .00 Cell Insert Delete Format Sort & Find & .00 0 Format Painter Clear Filter Select Number Editing Clipboard Font Alignment Styles Cells fx AT708 АР AU AK AL AM AN AO AQ AR AS AT AV AW AX 708 709 OWNER'S EQUITY = TOTAL ASSETS -TOTAL LIABILITIES a (306113950) -(1339 7257)] 710 2018 8415 7471 (3257+14501)-(1978 + 8309)] 711 2019 712 b CHANGES IN NWC (NWC)= CHANGES IN CURRENT ASSETS - CHANGES IN CURRENT LIABILITIES 713 714 -443 ((3257 -3061) - (1978-1339)] CHANGES IN NWC = 715 716 CASH FLOW FROM ASSETS C 717 SALES 44850 718 LESS COGS 22472 719 LESS DEPRECIATION 3825 18553 720 EBIT 721 LESS INTEREST 1015 722 ЕВT 17538 LESS 4034 723 ТАX 724 NET INCOME 13504 725 726 OCF EBIT DEPRECIATION - TAXES OCF = 18344 727 728 OCF CASH FLOW STATW FCF ARM, MSI,confidenceINDEX TAX GROWTH SUST CURRENCY LOAN CROSS OVER HEDGING MONEY MARKET GM HPR AM PREF AND DIV POLICY Rea erences 120% + WA 08:05 TENG 01-12-2019

NPV, IRR, PBP,OCF, INDEX - Microsoft Excel (Product Activation Failed) Page Layout File Home Insert Formulas Data Review View Add-Ins Cut E AutoSum Wrap Text Number Calibri 11 Copy Fill Merge & Center Paste в IU* 000 Conditional Format Cell Insert Delete Format Sort & Find & % K Format Painter Clear Filter Select Formatting as Table Styles Alignment Clipboard Font Number Styles Cells Editing fxAO722-A0723 AO724 AK AL AM AN AO АP AQ AR AS AT AU AV AW 725 OCF EBIT DEPRECIATION - TAXES 726 OCF = 727 18344 728 NCS NET CAPITAL SPENDING = YEAR ENDING NET FIXED ASSETS - YEAR BEGINNING FIXED ASSETS + DEPRECIATION 729 730 NCS NET CAPITAL SPENDING 14501 -13950 3825 = 4376 731 732 7948-4376= C-1 SALE OF FIXED ASSETS PURCHASE - NCS = 3572 733 14411 [-AO727-AS730-A0714] 734 C-2 CASH FLOW FROM ASSETS OCF -NCS NWC = 735 d-1 736 CASH FLOW TO CREDITORS= INTEREST - NET NEW BORROWING CASH FLOW TO CREDITORS = 1015 - 1052 = 737 -37 738 1052 d-2 (8309-7257) = 739 NET NEW BORROWING 740 NET NEW BORROWING = DEBT ISSUED - DEBT RETIRED 741 1052 2419 DEBT RETIRED 742 1367 DEBT RETIRED = 743 HEDGING MONEY MARKET LOAN CROSS OVER GM HPR AM TAX GROWTH SUST ARM, MSI,confidence INDEX CURRENCY PREF AND DIV POLICY OCF CASH FLOW STATW FCF erences 130% WA 08:06 TENG 01-12-2019