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 $3.052 $ 3,246 Current liabilities $ 1,333 $ 1,968 13,939 14,500 Long-term debt Net fixed assets 7,245 8,298 CABO WABO, INC. 2019 Income Statement Sales $44,835 22,467 Costs Depreciation Interest paid 3,819 1,017

Answer 1

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NPV, IRR, PBP,OCFINDEX - Microsoft Excel (Product Activation Failed) View Add-Ins Data Review - 2x = = = V General File Home Insert Page Layout Formulas % Cut Calibri 11 A A Ea Copy Paste Format Painter B I U B- A Clipboard Font Wrap Text Merge Merge & Center - Center SF $ -% % 4:0 .00 . Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Σ AutoSum : A Fill Sort & Find & Clear Filter Select Editing Alignment Number Cells - for AQ724 AK AL AM AO AP AQ AR AS AT AU AV AW AR AN CABO WABO 707 708 709 710 711 712 713 714 OWNER'S EQUITY = TOTAL ASSETS -TOTAL LIABILITIES 2018 8413 2019 7480 [=(3052 +13939) - (1333 +7245)] (=(3246 + 14500) -(1968 +8298)] b CHANGES IN NWC (NWC)= CHANGES IN CURRENT ASSETS - CHANGES IN CURRENT LIABILITIES CHANGES IN NWC = -441 [=(3246-3052) - (1968-1333)] 715 716 LESS LESS 717 718 719 720 721 722 CASH FLOW FROM ASSETS SALES COGS DEPRECIATION EBIT INTEREST EBT TAX NET INCOME 44835 22467 3819 18549 1017 17532 3857 13675 LESS 723 LESS 724 725 O FCFARM, MSI,confidenceINDEX CURRENCY LOAN CROSS OVER HEDGING MONEY MARKET GM HPR AM TAX GROWTH SUST I CF CASH FLOW STATW ferences PREF AND DIV POLICY 20J 130% Rea 0 ELEB * ENG 06-09-2019

NPV, IRR, PBP,OCFINDEX - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins - 2x % Cut Σ AutoSum : A Calibri 11 A A = = = V Wrap Text General E Copy Fill Paste BIU - D A Merge & Center - $ % , :.: Conditional Format Cell Insert Delete Format Format Painter Sort & Find & Formatting as Table Styles Clear Filter Select Clipboard Font Alignment Number Styles Cells Editing AM725 - for AK ALAM AN AO AP AQ AR AS AT AU AV AW AX 725 726 OCF = EBIT + DEPRECIATION - TAXES 727 OCF = 18511 728 729 NCS = NET CAPITAL SPENDING = YEAR ENDING NET FIXED ASSETS - YEAR BEGINNING FIXED ASSETS + DEPRECIATION 730 NCS = NET CAPITAL SPENDING = (14500-13939) + 3819 = 4380 731 732 C-1 SALE OF FIXED ASSETS = PURCHASE - NCS = 7939 - 4380 = 3559 733 734 C-2 CASH FLOW FROM ASSETS = OCF -NCS - NWC = 14572 (=A0727-AS730-A0714] 735 d-1 CASH FLOW TO CREDITORS = INTEREST - NET NEW BORROWING 737 CASH FLOW TO CREDITORS = 651 - 1204 = -36 738 d-2 NET NEW BORROWING = (8298-7245) = 1053 740 NET NEW BORROWING = DEBT ISSUED - DEBT RETIRED 741 1053 = 2413 - DEBT RETIRED 742 DEBT RETIRED = 1360 743 O CF CASH FLOW STATW FCFARM, MSI,confidenceINDEX CURRENCY LOAN CROSS OVER HEDGING MONEY MARKET GM HPR AM TAX GROWTH SUST PREF AND DIV POLICY I Rea ferences BOU 130% 0 . B 9 . * ENG 06-09-2019 736 739