Consider the following abbreviated financial statements for Cabo Wabo, Inc.:
a. What is owners' equity for 2009 and 2010?
b. What is the change in net working capital for 2010?
c. In 2010, Cabo Wabo purchased $5,616 in new fixed assets. How much in fixed assets did Cabo Wabo sell? What is the cash flow from assets for the year? (The tax rate is 40 percent.)
d. During 2010, Cabo Wabo raised $1,690 in new long-term debt. How much longterm debt must Cabo Wabo have paid off during the year? What is the cash flow to creditors?

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CABO WABO, INC. Partial Balance Sheets as of December 31, 2009 and 2010 2009 2009 2010 2010 Liabilities and Owners' Equity Assets Current assets $ 2,665 $ 2,824 Current liabilities $1,151 $1,691 Net fixed assets 12,355 12,917 Long-term debt 6,739 7,862 CABO WABO, INC. 2010 Income Statement Sales $39,870 Costs Depreciation Interest paid 19,994 3,367 624