Calculating Cash Flows Consider the following abbreviated financial statements for Parrot head

Enterprises:

a. What is owners?? equity for 2006 and 2007?

b. What is the change in net working capital for 2007?

c. In 2007, Parrot head Enterprises purchased $1,500 in new fixed assets. How much in fixed assets did Parrot head Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)

d. During 2007, Parrot head Enterprises raised $300 in new long-term debt. How much long-term debt must Parrot head Enterprises have paid off during the year? What is the cash flow tocreditors?

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PARROTHEAD ENTERPRISES 2006 and 2007 Partial Balance Sheets PARROTHEAD ENTERPRISES 2007 Income Statement Liabilities and Owners' Equity 2006 Assets Sales Costs Depreciation Interest paid $9,200 4,290 2006 2007 $ 785 3,600 2007 $ 325 1,680 820 Current assets Net fixed assets $ 725 Current liabilities Long-term debt $ 290 2,990 234 1,580