Calculating Cash Flows Consider the following abbreviated financial statements for Weston Enterprises:
WESTON ENTERPRISES 2009 and 2010 Partial Balance Sheets | |||||
Assets | Liabilities and Owners’ Equity | ||||
| 2009 | 2010 |
| 2009 | 2010 |
Current assets | $ 780 | $ 846 | Current liabilities | $ 318 | $ 348 |
Net fixed assets | 4,080 | 3,480 | Long-term debt | 1,800 | 2,064 |
WESTON ENTERPRISES 2010 Income Statement | |
Sales | $10,320 |
Costs | 4,980 |
Depreciation | 960 |
Interest paid | 259 |
a.What is owners’ equity for 2009 and 2010?
b.What is the change in net working capital for 2010?
c.In 2010, Weston Enterprises purchased $1,800 in new fixed assets. How much in fixed assets did Weston Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)
d.During 2010, Weston Enterprises raised $360 in new long-term debt. How much long-term debt must Weston Enterprises have paid off during the year? What is the cash flow to creditors?
Use the following information for Ingersoll, Inc., for Problems 23 and 24 (assume the
tax rate is 34 percent):
| 2009 | 2010 |
Sales | $ 5,223 | $ 5,606 |
Depreciation | 750 | 751 |
Cost of goods sold | 1,797 | 2,040 |
Other expenses | 426 | 356 |
Interest | 350 | 402 |
Cash | 2,739 | 2,802 |
Accounts receivable | 3,626 | 4,085 |
Short-term notes payable | 529 | 497 |
Long-term debt | 9,173 | 10,702 |
Net fixed assets | 22,970 | 23,518 |
Accounts payable | 2,877 | 2,790 |
Inventory | 6,447 | 6,625 |
Dividends | 637 | 701 |
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