Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following abbreviated financial statements for Cabo Wabo, Inc.: (Enter your answer as directed, but do not round intermediate calculations.) CABO WABO, INC. Partial

image text in transcribedimage text in transcribed

Consider the following abbreviated financial statements for Cabo Wabo, Inc.: (Enter your answer as directed, but do not round intermediate calculations.) CABO WABO, INC. Partial Balance Sheets as of December 31, 2013 and 2014 2013 2014 2013 2014 Assets Liabilities and Owners' Equity Current assets $ 2,681 $ 2,836 Current liabilities $ 1,143 $1,685 12,383 12,943 Net fixed assets Long-term debt 6,713 7,854 ok t nces CABO WABO, INC. 2014 Income Statement 39,910 Sales 20,010 Costs Depreciation 3,381 Interest paid 630 Requirement 1: What is owners' equity for 2013 and 2014? Owners' equity $ 2013 2014 Requirement 2: What is the change in net working capital for 2014? (Negative amount should be indicated by a minus sign.) Change in net working capital $ Requirement 3: In 2014, Cabo Wabo purchased $5,666 in new fixed assets. The tax rate is 40 percent. (a) How much in fixed assets did Cabo Wabo sell? (Round your answer to the nearest whole dollar amount (e.g., 32).) Fixed assets sold (b) What is the cash flow from assets for the year? (Round your answer to the nearest whole dollar amount (e.g., 32).) Cash flow from assets $ Requirement 4: During 2014, Cabo Wabo raised $1,720 in new long-term debt. (a) What is the cash flow to creditors? (Negative amount should be indicated by a minus sign. (Round your answer to the nearest whole dollar amount (e.g., 32).) Cash flow to creditors $ (b) How much long-term debt must Cabo Wabo have paid off during the year? (Round your answer to the nearest whole dollar amount (e.g., 32).) Debt retired $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Structured Finance And Insurance

Authors: Christopher L. Culp

2nd Edition

0471706310, 978-0471706311

More Books

Students also viewed these Finance questions

Question

Choose an appropriate organizational pattern for your speech

Answered: 1 week ago

Question

Writing a Strong Conclusion

Answered: 1 week ago