a. What is owners equity for 2015 an 2016?

b. What is the change in net working capital for 2016?

c. In 2016, Cabo Wabo purchased $7160 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 2016 Cabo Wabo raised $2155 in new long-term debt. How much long-term debt must Cabo Wabo have paid off during the year? What is the cash flow to creditors?

CABO WABO, INC.

Partial Balance Sheets as of December 31, 2015 and 2016

Current Assets 2015: $2,718 2016: $2,881 Current Liabilites 2015: $1,174 2016: $1,726

Net Fixed Assets 2015: $12,602 2016: $13,175 Long Term Debt 2015: $6,873 2016: $8,019

2016 Income Statement

Sales $40,664

Costs $20,393

Depreciation $3,434

Interest paid $938