pls answer question a, b , c. i have corrected the details given which was wrong in the text book. thank you
Net income Mex$126 Mex$234 3-16. (Working with financial statements) Based on the information for Norwegian Bristling Company for the year ended December 31, 2018: a. How much is the firm's net working capital and what is the debt ratio? b. Complete a statement of cash flows for the period. Interpret your results. c. Compute the changes in the balance sheets from 2017 to 2018. What do you learn about Norwegian Bristling from these computations? How do these numbers relate to the statement of cash flows? Norwegian Bristling Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash NOK16,000 NOK15,000 Marketable securities 7,000 7,500 Accounts receivable 45,000 35,000 Inventory 60.000 95,000 Prepaid rent NOK2,000 NOK3,000 Total current assets NOK130,000 NOK155,500 Net plant and equipment 290.000 300,500 Total assets NOK420.000 NOK456.000 CHAPTER 3. Understanding Financial Statements and Cash Flows 119 Liabilities and Equity 2017 2018 NOK60,000 7,000 16,000 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity NOK50,000 7.000 16,000 NOK73.000 NOK170,000 NOK177.000 NOK420.000 NOK83,000 NOK160.000 NOK216.000 NOK456.000 Norwegian Bristling Company Income Statement for the Year Ended 12/31/2018 Sales 2018 NOK620,000 470.000 NOK150,000 Less: Cost of goods sold Gross Profit Operating and interest expenses General and administrative expense Interest Depreciation Total operating and interest expenses Net income available to common stockholders Cash dividends Change in retained earnings NOK38.000 12,000 30,000 NOK80,000 NOK70,000 31,000 NOK39.000 Net income Mex$126 Mex$234 3-16. (Working with financial statements) Based on the information for Norwegian Bristling Company for the year ended December 31, 2018: a. How much is the firm's net working capital and what is the debt ratio? b. Complete a statement of cash flows for the period. Interpret your results. c. Compute the changes in the balance sheets from 2017 to 2018. What do you learn about Norwegian Bristling from these computations? How do these numbers relate to the statement of cash flows? Norwegian Bristling Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash NOK16,000 NOK15,000 Marketable securities 7,000 7,500 Accounts receivable 45,000 35,000 Inventory 60.000 95,000 Prepaid rent NOK2,000 NOK3,000 Total current assets NOK130,000 NOK155,500 Net plant and equipment 290.000 300,500 Total assets NOK420.000 NOK456.000 CHAPTER 3. Understanding Financial Statements and Cash Flows 119 Liabilities and Equity 2017 2018 NOK60,000 7,000 16,000 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity NOK50,000 7.000 16,000 NOK73.000 NOK170,000 NOK177.000 NOK420.000 NOK83,000 NOK160.000 NOK216.000 NOK456.000 Norwegian Bristling Company Income Statement for the Year Ended 12/31/2018 Sales 2018 NOK620,000 470.000 NOK150,000 Less: Cost of goods sold Gross Profit Operating and interest expenses General and administrative expense Interest Depreciation Total operating and interest expenses Net income available to common stockholders Cash dividends Change in retained earnings NOK38.000 12,000 30,000 NOK80,000 NOK70,000 31,000 NOK39.000
