Question

2018 2019 Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets $ 3,106 $ 3,312 Current liabilities 14,005 14,506 Net fixed assets Long-term debt $1,369 $ 2,028 10 points 7,317 8,364 Skipped CABO WABO, INC. 2019 Income Statement Sales 22,497 Costs $44,925 eBook 3,855 Print Depreciation Interest paid 1,005 References b. a. What is owners' equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) What is the change in net working capital for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) C-1. In 2019, the company purchased $7,993 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) C-2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. During 2019, the company raised $2,449 in new long-term debt. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Answer 1

OCF-Change in NWC-Net capital spending Owners' equity 2018 Owners' equity 2019 Cash flow from Assets $ 8,425 $ 7,426 Income Statement =3106+14005-1369-7317 Sales $ 44,925 $ 22,497 $ 3,855 $ 18,573 $ 1,005 $ 17,568 $ 4,041 Cash flow from Assets 14,484 -3312+ 14506-2028-8364 -18387- (-453)-4356 Less: Costs Less: Depreciation $ 1,284 Operating cash flows Operating cash flows NWC 2019 Less: NWC 2018 EBIT-Taxes+Depreciation EBIT -3312-2028 Less: Interest 1,737 18,387 =3106-1369 EBT -18573-4041+3855 -$453 Less: Tax@ 23% Change in NWc Net income Net capital spending (NCS) Net capital spending (NCS) $ Increase in NFA Depreciation $13,527 4,356 = (14506-14005)+3855 Fixed assets sold Fixed assets bought - Net capital spending Fixed assets sold $ 3,637 =7993-4356 Beginning debt+New debt-Ending debt Debt retired Debt retired 1,402 =7317+ 2449-8364 Interest-New long term debt Cash flow to creditors (CFC) -$42.00 Cash flow to creditors -1005-(8364-7317) 8,425 7,426 -$453 3,637 14,484 -$42 Owners' equity 2018 a) $ Owners' equity 2019 b) Change in NWC $ c-1) Fixed assets sold c-2) Cash flow from assets d-1) Cash flow to creditors $ 1,402 d-2) Debt retired

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