Question

Consider the following abbreviated financial statements for Cabo Wabo, Inc. (Enter your answers directed, but do not round Intermediate calculations.) CABO WABO, INC Partial Balance Sheets as of December 31, 2013 and 2014 2013 Liabilities and Owners' Equity $ 3.198 $ 3.389Current liabilities 14,826 15,500Long-term debt 2014 Assets Current assets Net fixed assets 2013 | 2014 $ 1.381 $ 2.030 8.086 9,434 CABO WABO, INC. 2014 Income Statement 47 842 Sales Costs 23,992 Depreciation 4,040 750 Interest paid Requirement 1: What is owners equity for 2013 and 2014? (Round your answers to the nearest whole number leg 32)) Owners' equity 2013 8557 2014 7425 Requirement 2: What is the change in net working capital for 2014? (Round your answer to the nearest whole number (e.g., 32). Negative amount should be indicated by a minus sign.) -458 Change in net working capital

Answer 1

1. As owner's Equity = Total Assets - Total Liabilities

= Current Assets + Net Fixed Assets - Current Liabilities - Long-Term Liabilities

Applying the formula, Owner's Equity is $8,557 & $ 7,425 in 2013 & 2014 respectively

2. Net Working Change = Working Capital 2014 - Working Capital 2013 = Current Assets 2014 - Current Liabilities 2014 - Current Assets 2013 + Current Liabilities 2013 = -$458.

	2013	2014
Current Assets (CA)	3,198	3,389
Net Fixed Assets (FA)	14,826	15,500
Total Assets	18,024	18,889
Current Liabilities (CL)	1,381	2,030
Long-Term Debt (LL)	8,086	9,434
Owners Equity (OE)	8,557	7,425
Net working capital change (2014)		-458