21 Fit to page D Page view Problem Set 1 1. Consider the following abbreviated financial statements for Cabo Wabo, Inc. (tax rate: 23%): CABO WABO INC Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets $ 3,061 $ 3,257 Current liabilities $ 1,339 $ 1,978 Net fixed assets 13.950 14,501 Long-term debt 7.257 8,309 CABO WABO, INC. 2019 Income Statement Sales $44,850 Costs 22.472 Depreciation 3,825 Interest paid 1015 a What is owners' equity for 2018 and 2019? b. What is net income for 2019? e What is the operating cash flow for 2019? d. What is the cash flow from assets for 20197 What is the cash flow to creditors for 2019? What is the cash flow to stockholders for 2019 2. Some recent financial statements for Smolira Golf, Inc., follow 2019 SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 Liabilities and Owners' Equity Current abilities $ 3.251 $ 3.407 Accounts payable $ 2.143 4,777 5.801 Notes payable 1,740 12,438 13.802 Other 88 Asset Current assets Cash Accounts receivable Inventory $ 2.580 2.006 105 $ 20,466 $ 23,010 Tot $ 3.971 Tot $ 4,761 $ 13,600 $ 16,360 Long-term debit Owners' equity Common stock and paid in surplus Accumulated retained earnings $ $ 37,000 15.644 Fixed assets 37.000 38,966 75,966 Nel plant and equipment $ 49,749 $ 74,097 Total $ $ 52,644 Total assets $ 70,215 $ 97,107 Total liabilities and owners' equity $ 70,215 $ 97,107 SMOLIRA GOLF, INC. 2019 Income Statement Sales $ 180,970 Cost of goods sold 126,003 Depreciation 5,353 EBIT $ 55,614 Interest paid 1,450 Taxable income $ 54,164 Taxes 18,957 Net Income $ 35.207 $ Dividends Retained earnings 11.885 23,322 Interest Rate Future Value 3, A. For each of the following compute the future value: Present Value Years $2,600 7 $9,553 20 $100,305 14 $238,382 30 17% 9% 10% 4% B, For each of the following, compute the present value: Present Value Years Interest Rate 9 1 13 18 7% 12% 15% 14% Future Value $18,428 $42,617 $801,382 $658,816