Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019

Consider the following abbreviated financial statements for Cabo Wabo, Inc.:
CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019
2018 2019 2018 2019
Assets Liabilities and Owners Equity
Current assets $ 3,106 $ 3,312 Current liabilities $ 1,369 $ 2,028
Net fixed assets 14,005 14,506 Long-term debt 7,317 8,364
CABO WABO, INC. 2019 Income Statement
Sales $ 44,925
Costs 22,497
Depreciation 3,855
Interest paid 1,005

a. What is owners equity for 2018 and 2019?

B. What is the change in net working capital for 2019?

C-1: In 2019, the company purchased $7,993 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell?

C-2: What is the cash flow from assets for the year?

D-1: During 2019, the company raised $2,449 in new long-term debt. What is the cash flow to creditors?

D-2: How much long-term debt must the company have paid off during the year?

-----------------

a.

What is owners equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

b. What is the change in net working capital for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
c-1. In 2019, the company purchased $7,993 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
c-2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
d-1. During 2019, the company raised $2,449 in new long-term debt. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
d-2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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_2

Step: 3

blur-text-image_3

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

Entrepreneurial Finance

Authors: M. J. Alhabeeb

1st Edition

1118691512, 978-1118691519

More Books

Students also viewed these Finance questions

Question

What is a verb?

Answered: 1 week ago

Question

5. Have you stressed the topics relevance to your audience?

Answered: 1 week ago