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Problem 2-20 Calculating Cash Flows [LO 4] Consider the following abbreviated financial statements for Cabo Wabo, Incorporated: CABO WABO, INCORPORATED Partial Balance Sheets as
Problem 2-20 Calculating Cash Flows [LO 4] Consider the following abbreviated financial statements for Cabo Wabo, Incorporated: CABO WABO, INCORPORATED Partial Balance Sheets as of December 31, 2021 and 2022 Assets Current assets 2021 Net fixed assets $ 3,025 13,906 CABO WABO, INCORPORATED 2022 Income Statement Sales $ 44,790 Costs 22,452 Depreciation Interest paid 3,801 1,023 2022 $3,213 14,497 Liabilities and Owners' Equity Current liabilities Long-term debt 2021 $ 1,315 7,209 2022 $ 1,938 8,265 a. What is owners' equity for 2021 and 2022? Note: 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 2022? Note: 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 2022, the company purchased $7,912 in new fixed assets. The tax rate is 24 percent. How much in fixed assets did the company sell? Note: 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? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. d-1. During 2022, the company raised $2,395 in new long-term debt. What is the cash flow to creditors? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and hound 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? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Answer is not complete. a. 2021 Owners' equity $ 8,407 2022 Owners' equity $ 7,507 b. Change in net working capital $ -435 c-1. Fixed assets sold c-2. Cash flow from assets d-1. Cash flow to creditors $ 7,202 X $ 2,362 d-2. Debt retired
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