Question

Consider the following abbreviated financial statements for Weston Enterprises:

   

WESTON ENTERPRISES 2018 and 2019 Partial Balance Sheets
Assets								Liabilities and Owners’ Equity
		2018			2019					2018			2019
Current assets	$	1,230		$	1,339			Current liabilities	$	510		$	565
Net fixed assets		5,001			6,032			Long-term debt		2,672			2,843

  

WESTON ENTERPRISES 2019 Income Statement
Sales	$	15,490
Costs		7,171
Depreciation		1,387
Interest paid		404

  

a.	What is owners' equity for 2018 and 2019? (Do not round intermediate calculations.)
b.	What is the change in net working capital for 2019? (Do not round intermediate calculations.)
c-1.	In 2019, Weston Enterprises purchased $2,544 in new fixed assets. How much in fixed assets did the company sell? (Do not round intermediate calculations.)
c-2.	In 2019, Weston Enterprises purchased $2,544 in new fixed assets. What is the cash flow from assets for the year? The tax rate is 24 percent. (Do not round intermediate calculations.)
d-1.	During 2019, Weston Enterprises raised $524 in new long-term debt. How much long-term debt must Weston Enterprises have paid off during the year? (Do not round intermediate calculations.)
d-2.	During 2019, Weston Enterprises raised $524 in new long-term debt. What is the cash flow to creditors? (Do not round intermediate calculations.)

Answer 1

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