Question

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change in NWC:
Fixed Asset Sold:
Cash Flow from Asset:
Debt Retired:
Cash flow to Creditors:

HW 2 Saved Consider the following abbreviated financial statements for Parrothead Enterprises PARROTHEAD ENTERPRISES 2017 and 2018 Partial Balance Sheets Assets 2017 $1.266 $1,387 5,043 Liabilities and Owners' Equity 2018 2017 2018 $ 552 $ 601 2,738 Current assets Net fixed assets Current liabilities oints 6,098 Long-term debt 2,915 eBook PARROTHEAD ENTERPRISES 2018 Income Statement $15,778 7,225 1,423 428 Print References Sales Costs Depreciation Interest paid What is owners' equity for 2017 and 2018? (Do not round intermediate calculations.) What is the change in net working capital for 2018? (Do not round intermedi calculations.) a. b. PARROTHEAD ENTERPRISES 2018 Income Statement $15,778 7,225 1,423 428 Sales Costs Depreciation Interest paid k What is owners' equity for 2017 and 2018? (Do not round intermediate calculations.) What is the change in net working capital for 2018? (Do not round intermediate calculations.) c-1. In 2018, Parrothead Enterprises purchased $2,616 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? (Do not round intermediate calculations.) c-2. In 2018, Parrothead Enterprises purchased $2,616 in new fixed assets. What is the cash flow from assets for the year? The tax rate is 22 percent. (Do not round intermediate calculations.) d-1. During 2018, Parrothead Enterprises raised $554 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? (Do not round intermediate calculations.) d-2. During 2018, Parrothead Enterprises raised $554 in new long-term debt. What is the cash flow to creditors? (Do not round intermediate calculations.) a. b. ces $ Owners' equity 2017 3,019 a. 3,969 $ . Owners' equity 2018

Answer 1

Ques 1
	2017	2018
Current Assets	1266	1387
Net fixed assets	5043	6098
total assets (a)	6309	7485
Current liabilties	552	601
Long term debt	2738	2915
total liabilties(b)	3290	3516
Owners equity (a-b)	3019	3969
Ques 2
	2017	2018
Current Assets	1266	1387
Current liabilties	552	601
Net working capital	714	786
Change	72
Ques 3
c-1	$     138.00
c-2	$ 4,528.56
Net fixed assets-2015	6098
Net fixed assets-2014	-5043
Depreciation	1423
Net capital speding	2478
Fixed assets bought	2616
Less:net capital spending	-2478
Fixed assets sold	138
Sales	15778
costs	7225
Depreciation	1423
EBIT	7130
Interest expenses	428
EBT	6702
Taxes	1474.44
Net income	5227.56
EBIT	7130
+Depreciation	1423
-Taxes	-1474.44
Operating cash flow	7078.56
-Change in NWC	-72
-Net capital spending	-2478
cash flow from assets	4528.56
Ques 4
d-1	377
d-2	251
	2017	2018
Long term debt	2738	2915
Net new borrowing	177
Debt issued	554
-Net new borrowing	-177
Debt retired	377
Cash flow to creditors
Interest	428
Net new long term debt	-177
Cash flow to creditors	251