Question

Consider the following abbreviated financial statements for Parrothead Enterprises:

   

PARROTHEAD ENTERPRISES 2016 and 2017 Partial Balance Sheets
Assets								Liabilities and Owners’ Equity
		2016			2017					2016			2017
Current assets	$	1,218		$	1,323			Current liabilities	$	496		$	553
Net fixed assets		4,987			6,010			Long-term debt		2,650			2,819

  

PARROTHEAD ENTERPRISES 2017 Income Statement
Sales	$	15,394
Costs		7,153
Depreciation		1,375
Interest paid		396

  

a.	What is owners' equity for 2016 and 2017? (Do not round intermediate calculations.)
b.	What is the change in net working capital for 2017? (Do not round intermediate calculations.)
c-1.	In 2017, Parrothead Enterprises purchased $2,520 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? (Do not round intermediate calculations.)
c-2.	In 2017, Parrothead Enterprises purchased $2,520 in new fixed assets. What is the cash flow from assets for the year? The tax rate is 22 percent. (Do not round intermediate calculations.)
d-1.	During 2017, Parrothead Enterprises raised $514 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? (Do not round intermediate calculations.)
d-2.	During 2017, Parrothead Enterprises raised $514 in new long-term debt. What is the cash flow to creditors? (Do not round intermediate calculations.)

$ $ Owners' equity 2017 Owners' equity 2018 Change in NWC Fixed assets sold Cash flow from assets Debt retired Cash flow to creditors 3,059 3,961 48 122 $ -2. d-1. d-2. $ 345

I need help figuring out "C-2. Cash flow from assets and d-2. Cash flow to creditors."

Answer 1

I cash flow from Assets =opeating Cash flow - Net Capital 2 spending - 6818 - 2398 - 48 - change in Nwe - 4372 * operating cash flow - EBIT + Depreciation - Taxes sales = 15,394 (-) Cost =(7153) (-) Depreciation = (1375) EBIT -> 6866 (-) Interest. 396 "EBT -> 6470 (-) Tax@ 224.. 1423 O EAT > 5047 operating cost flow -686641375 -1423 = 6818 Jet ca noi. Endina Beginning net fixed net fired Asset B Asset in = 6010 -4987+13 = 2398 Bash flow to creditors - = Interest paid - Ending debt + Beginning = 396 - 2819 +2650 = 396 - 169