Consider the following abbreviated financial statements for Parrothead Enterprises: a. What is owners equity for 2020 and
Question:
Consider the following abbreviated financial statements for Parrothead Enterprises:
a. What is owners’ equity for 2020 and 2021?
b. What is the change in net working capital for 2021?
c. In 2021, Parrothead Enterprises purchased $2,740 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? What is the cash flow from assets for the year? The tax rate is 21 percent.
d. During 2021, Parrothead Enterprises raised $554 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? What is the cash flow to creditors?
PARROTHEAD ENTERPRISES PARROTHEAD ENTERPRISES 2020 and 2021 Partial Balance Sheets 2021 Income Statement Assets Liabilities and Owners' Equity Sales $16,831 2020 2021 2020 2021 Costs 7,849 Current assets $1,327 $1,438 Current liabilities $ 530 $ 595 Depreciation 1,499 Interest paid 427 Net fixed assets 5,470 6,587 Long-term debt 2,891 3,075
Step by Step Answer:
20 a using standard equation assets equity Liabilities equity assets liabilities 2020 Equity 1327...View the full answer
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
Consider the following abbreviated financial statements for Weston Enterprises: a. What is owners equity for 2011 and 2012? b. What is the change in net working capital for 2012? c. In 2012, Weston...
-
Consider the following abbreviated financial statements for Cabo Wabo, Inc.: a. What is owners' equity for 2007 and 2008? b. What is the change in net working capital for 2008? c. In 2008, Cabo Wabo...
-
Consider the following abbreviated financial statements for Cabo Wabo, Inc.: a. What is owners' equity for 2013 and 2014? b. What is the change in net working capital for 2014? c. In 2014, Cabo Wabo...
-
After 1 0 0 0 B . C . E . trade in Greece allowed for the accumulation of wealth by Kings Aristoi Farmers Foreigners
-
Order the following oxidizing agents by increasing strength under standard-state conditions: O2(g); MnO4 (aq); NO3 (aq) (in acidic solution).
-
You have been hired to correct the trial balance below that has been recorded improperly from the ledger to the trialbalance. SANDY Co. TRIAL BALANCE JANUARY 31, 20 1X Dr Cr Accounts Payable A. Sandy...
-
What is the relevance of dividend cover if dividends are paid out of distributable profits?
-
Fancy Foods Company produces and sells canned vegetable juice. The ingredients are first combined in the blending department and then packed in gallon cans in the canning department. The following...
-
Quadrilateral UVWX is a rectangle, UY = t 4, and VY = 3t56. What is the value of t? X W t = Y V U
-
Two coupled oscillators in a potential V (x, y)==1/2 kx^2 + 2xy +1/2 ky^2 (k>2) can be decoupled into two independent harmonic oscillators (coordinates: x',y') by means of an appropriate...
-
In Problem 17, suppose Raines Umbrella Corp. paid out $128,000 in cash dividends. Is this possible? If net capital spending and net working capital were both zero, and if no new stock was issued...
-
Polska, Inc., is obligated to pay its creditors $10,300 during the year. a. What is the market value of the shareholders equity if assets have a market value of $11,600? b. What if assets equal...
-
Metro, Inc. reported net income of $150,000 for 2008. Changes occurred in several balance sheet accounts during 2008 as follows: Required: Determine the reported net cash provided by operating...
-
Which user of statistics has the primary job of supporting terminally ill patients and their families? a. Home health agencies b. Nursing facilities c. Hospice d. MCOs
-
If accounts receivable turnover (credit sales/receivables) was 7.1 times in 2009 compared to only 5.6 times in 2010, it is possible that there were a. Unrecorded credit sales in 2010. b. Unrecorded...
-
An auditor should perform alternative procedures to substantiate the existence of accounts receivable when a. No reply to a positive confirmation request is received. b. No reply to a negative...
-
In a properly designed purchasing process, the same employee most likely would match vendors' invoices with receiving reports and also a. Post the detailed accounts payable records. b. Recompute the...
-
The CDC is the lead agency that ___ _ a. Accredits and licenses acute hospital facilities in the United States b. Is responsible for providing vital statistics to various agencies, such as the NCHS...
-
In business, a group of executives is often assigned to make key decisions. The American Journal of Political Science (April 2014) published a study on a woman's impact on mixed-gender deliberating...
-
Beginning with a country that has a trade deficit, demonstrate graphically what will happen to a countrys potential output with globalization if that countrys costs of production fall. Explain your...
-
Du Pont Identity Construct the Du Pont identity for Smolira Golf Corp.
-
Sustainable Growth In the chapter, we used Rosengarten Corporation to demonstrate how to calculate EFN. The ROE for Rosengarten is about 7.3 percent, and the plowback ratio is about 67 percent. If...
-
External Financing Needed Testaburger, Inc., uses no external financing and maintains a positive retention ratio. When sales grow by 15 percent, the firm has a negative projected EFN. What does this...
-
Seved Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,220...
-
For Sandhill Company, variable costs are 70% of sales and fixed costs are $191,100. Calculate the required sales in dollars that are needed to achieve management's target operating income of $73,500....
-
Japan Company produces lamps that require 2 standard hours per unit at a standard hourly rate of $18.30 per hour. Production of 7,900 units required 15,330 hours an hourly rate of $18.70 per hour....
Study smarter with the SolutionInn App