Question

Consider the following abbreviated financial statements for Barrie Enterprises:

 

BARRIE Enterprises 2017 and 2018 Partial Statement of Financial Position
Assets						Liabilities and Owner's Equity
		2017		2018			2017		2018
Current assets	$	922	$	998	Current liabilities	$	369	$	401
Net fixed assets		3,847		4,616	Long-term debt		2,031		2,161

 

BARRIE Enterprises 2018 Statement of Comprehensive Income
Sales	$	12,000
Costs		5,445
Depreciation		1,073
Interest paid		302

 

a. What is owner's equity for 2017 and 2018? (Omit $ sign in your response.)

 

Owner's equity 2017	$ 2369 Numeric ResponseEdit Unavailable. 2369 correct.
Owner's equity 2018	$ 3052 Numeric ResponseEdit Unavailable. 3052 correct.

 

b. What is the change in net working capital for 2018? (Omit $ sign in your response.)

 

Change in NWC           $ 44 Numeric ResponseEdit Unavailable. 44 correct.

 

c1. In 2018, Barrie Enterprises purchased $1,934 in new fixed assets. How much in fixed assets did Barrie Enterprises sell? (Omit $ sign in your response.)

 

Fixed assets sold           $ 

 

c2. In 2018, Barrie Enterprises purchased $1,934 in new fixed assets. What is the cash flow from assets for the year? (The tax rate is 35%.) (Omit $ sign in your response.)

 

Cash flow from assets           $ 

 

d1. During 2018, Barrie Enterprises raised $386 in new long-term debt. How much long-term debt must Barrie Enterprises have paid off during the year? (Omit $ sign in your response.)

 

Debt retired           $ 

 

d2. During 2018, Barrie Enterprises raised $386 in new long-term debt. What is the cash flow to creditors? (Omit $ sign in your response.)

 

Cash flow to creditors           $ 

Answer 1

Owner's equity = Total Assets - Total liability

For 2017 -

Total asset = Current asset + Net fixed asset

= 948+4107

= $5055

Total liability = Current liability + long term debt

= 382 + 2161

= $2543

Owner's equity = 5055 - 2543

= 2512

For 2018 -

Total asset = Current asset + Net fixed asset

= 1024 + 4876

= $5900

Total liability = Current liability + long term debt

= 416+2304

= $2720

Owner's equity = 5900 - 2720

= $3180

Fixed asset sold in 2018 = Net asset in 2017 - net asset in 2017 - depreciation + purchase

= 4107 - 1203 - 4876 +2077

= $105