Question
Consider the following abbreviated financial statements for Parrothead Enterprises: PARROTHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014
Consider the following abbreviated financial statements for Parrothead Enterprises: |
PARROTHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets | ||||||||||||||
Assets | Liabilities and Owners Equity | |||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||
Current assets | $ | 950 | $ | 1,016 | Current liabilities | $ | 385 | $ | 416 | |||||
Net fixed assets | 3,967 | 4,608 | Long-term debt | 2,035 | 2,207 | |||||||||
PARROTHEAD ENTERPRISES 2015 Income Statement | ||
Sales | $ | 12,530 |
Costs | 5,990 | |
Depreciation | 1,080 | |
Interest paid | 200 | |
a. | What is owners' equity for 2014 and 2015? (Do not round intermediate calculations.) |
Owners' equity 2014 | $ |
Owners' equity 2015 | $ |
b. | What is the change in net working capital for 2015? (Do not round intermediate calculations.) |
Change in NWC | $ |
c-1 | In 2015, Parrothead Enterprises purchased $1,885 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? (Do not round intermediate calculations.) |
Fixed assets sold | $ |
c-2 | In 2015, Parrothead Enterprises purchased $1,885 in new fixed assets. What is the cash flow from assets for the year? (The tax rate is 35 percent.) (Do not round intermediate calculations.) |
Cash flow from assets | $ |
d-1 | During 2015, Parrothead Enterprises raised $410 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? (Do not round intermediate calculations.) |
Debt retired | $ |
d-2 | During 2015, Parrothead Enterprises raised $410 in new long-term debt. What is the cash flow to creditors? (Do not round intermediate calculations.) |
Cash flow to creditors |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started