Question
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
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?
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