CABO WABO, INC.
Partial Balance Sheets as of December 31, 2007 and 2008
	2006	2007			2006	2007
Assets				Liabilities and Owner's Equity
Current assets	$1,710	$1,811		Current liabilities	$738	$1,084
Net fixed assets	7,920	8,280		Long-term debt	$4,320	5,040

CABO WABO, INC.
2007 Income Statement
Sales		$ 25,560
Costs		12,820
Depreciation		2,160
Interest paid		389

a. What is owners equity for 2006 an 2007?

b. What is the change in net working capital for 2007?

c. In 2007, Cabo Wabo purchased $3,600 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 35 percent.)

d. During 2007 Cabo Wabo raised $1,080 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?