PART 2 Understanding Financial Statements and Cash Flow 21. Calculating Cash Flows Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019 CABO WABO, INC. 2019 Income Statement 2019 Assets Current assets Net fixed assets 2018 2019 2018 Liabilities and Owners' Equity $ 2,989 $ 3,169 Current liabilities $1,291 13,862 14,493 Long-term debt 7,161 Sales Costs Depreciation Interest paid $44,730 22,432 3,777 1,032 $1,898 8,221 a. What is owners' equity for 2018 and 2019? b. What is the change in net working capital for 2019? c. In 2019, the company purchased $7,876 in new fixed assets. How much in fixed assets did the company sell? What is the cash flow from assets for the year? (The tax rate is 22 percent.) d. During 2019, the company raised $2,371 in new long-term debt. How much long-term debt must the company have paid off during the year What is the cash flow to creditors? 92 Chen Elsa