Calculating Cash Flows Consider the following abbreviated financial statements for Weston Enterprises:

WESTON ENTERPRISES 2011 and 2012 Partial Balance Sheets Assets Liabilities and Owners’ Equity 2011 2012 2011 2012 Current assets $ 936 $1,015 Current liabilities $ 382 $ 416 Net fixed assets 4,176 4,896 Long-term debt 2,160 2,477 WESTON ENTERPRISES 2012 Income Statement Sales $12,380 Costs 5,776 Depreciation 1,150 Interest paid 314

a. What is owners’ equity for 2011 and 2012?

b. What is the change in net working capital for 2012?

c. In 2012, Weston Enterprises purchased $2,160 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 40 percent.)

d. During 2012, Weston Enterprises raised $432 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?