Consider the following abbreviated financial statements for Parrothead Enterprises:

PARROTHEAD ENTERPRISES 2010 and 2011 Partial Balance Sheets
Assets								Liabilities and Owners Equity
		2010			2011					2010			2011
Current assets	$	930		$	1,004			Current liabilities	$	375		$	431
Net fixed assets		3,837			4,568			Long-term debt		2,015			2,157

PARROTHEAD ENTERPRISES 2011 Income Statement
Sales	$	11,580
Costs		5,640
Depreciation		1,040
Interest paid		180

a.	What is owners' equity for 2010 and 2011?

Owners' equity 2010	$
Owners' equity 2011	$

b.	What is the change in net working capital for 2011?

Change in NWC

$

b1	In 2011, Parrothead Enterprises purchased $1,835 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell?

Fixed assets sold

$

c2	In 2011, Parrothead Enterprises purchased $1,835 in new fixed assets. What is the cash flow from assets for the year? (The tax rate is 35 percent.)

Cash flow from assets

$

d1	During 2011, Parrothead Enterprises raised $370 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year?

Debt retired

$

d2	During 2011, Parrothead Enterprises raised $370 in new long-term debt. What is the cash flow to creditors?

Problem #2

Chevelle, Inc., has sales of $46,500, costs of $24,400, depreciation expense of $1,600, and interest expense of $1,500.

If the tax rate is 35 percent, what is the operating cash flow, or OCF?