Consider the following abbreviated financial statements for Parrothead Enterprises:

a. What is owners’ equity for 2001 and 2002?

b. What is the change in net working capital for 2002?

c. In 2002, Parrothead Enterprises purchased $1,500 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 35 percent.)

d. During 2002, Parrothead Enterprises raised $300 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?

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PARROTHEAD ENTERPRISES Partial Balance Sheets as of December 31, 2001 and 2002 2001 2002 Assets Current assets Net fixed assets $ 625 $ 684 2,800 3,100 2001 Liabilities and Owners' Equity Current liabilities $ 245 $ 332 Long-term debt 1,400 1,600 2002 PARROTHEAD ENTERPRISES 2002 Income Statement Sales $8,100 Costs 3,920 Depreciation 700 Interest paid 212