Question
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
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, 2015 and 2016 | |||||||||
2015 | 2016 | 2015 | 2016 | ||||||
Assets | Liabilities and Owners Equity | ||||||||
Current assets | $ | 2,718 | $ | 2,881 | Current liabilities | $ | 1,174 | $ | 1,726 |
Net fixed assets | 12,602 | 13,175 | Long-term debt | 6,873 | 8,019 | ||||
CABO WABO, INC. 2016 Income Statement | |||||||||
Sales | $ | 40,664 | |||||||
Costs | 20,393 | ||||||||
Depreciation | 3,434 | ||||||||
Interest paid | 638 | ||||||||
Requirement 1: |
What is owners equity for 2015 and 2016? (Round your answers to the nearest whole number (e.g., 32).) |
Owners equity | |
2015 | $ |
2016 | $ |
Requirement 2: |
What is the change in net working capital for 2016? (Round your answer to the nearest whole number (e.g., 32). Negative amount should be indicated by a minus sign.) |
Change in net working capital | $ |
Requirement 3: |
In 2016, Cabo Wabo purchased $7,160 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 number (e.g., 32).) |
Fixed assets sold | $ |
(b) | What is the cash flow from assets for the year? (Round your answer to the nearest whole number amount (e.g., 32).) |
Cash flow from assets | $ |
Requirement 4: |
During 2016, Cabo Wabo raised $2,155 in new long-term debt. |
(a) | What is the cash flow to creditors? (Round your answer to the nearest whole number (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 number (e.g., 32). Negative amount should be indicated by a minus sign.) |
Debt retired | $ |
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