Problem 6 Intro Below is the balance sheet for Southern Comfort Company for December 31 of 2019 and 2020. Cash Accounts receivable Inventory Current assets Net fixed assets Total assets 2019 2020 1,650 2,100 Accounts payable 4,950 6,300 Current liabilities 4,950 6,300 Long-term debt 11,550 14,700 Total liabilities 21,450 27,300 Equity 33,000 42,000 Liab. & equity 2019 2020 4,950 6,300 4,950 6,300 9,900 12,600 14,850 18,900 18,150 23,100 33,000 42,000 A partial income statement for 2020 is also given: Amount Sales 100,800 Cost 55,440 Depreciation 15,120 Interest 10,080 Taxes (34%) The company had investment in fixed assets of $20,970 in 2020. 18 | Attempt 1/7 for 10 pts. Part 1 What was net income in 2020? 13,306 Correct Attempt 1/7 for 10 pts. Part 1 What was net income in 2020? 13,306 Correct Amount Sales 100,800 Cost 55,440 Depreciation 15,120 EBIT 30,240 Interest 10,080 EBT 20,160 Taxes (34%) 6,854 Net income 13,306 18 | Attempt 1/7 for 10 pts. Part 2 What was the change in working capital? 1,800 Correct NWC = Current assets - Current liabilities NWC2019= 11,550 - 4,950 = 6,600 NWC2020 = 14,700 - 6,300 = 8,400 The change in working capital: AWC = NWC2020 - NWC2019 = 8,400 - 6,600 = 1,800 Attempt 1/7 for 10 pts. Part 2 What was the change in working capital? 1,800 Correct NWC = Current assets - Current liabilities NWC2019= 11,550 - 4,950 = 6,600 NWC2020 = 14,700 - 6,300 = 8,400 The change in working capital: AWC = NWC2020 - NWC 2019 = 8,400 - 6,600 = 1,800 Attempt 2/7 for 10 pts. Part 3 What was the free cash flow in 2020? 0+ decimals Previous answers: 5656 Submit