Problem 2-22 Calculating Cash Flows [LO4]

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	$	940		$	996			Current liabilities	$	380		$	401
Net fixed assets		3,987			4,588			Long-term debt		2,025			2,182

PARROTHEAD ENTERPRISES 2015 Income Statement
Sales	$	12,055
Costs		5,815
Depreciation		1,060
Interest paid		180

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 $1,860 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 $1,860 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

$