Calculating Owners’ Equity, Net Working Capital, Fixed Assets, Long Term Debt, and Cash Flow to Creditors
Consider the following abbreviated financial statements for Parrothead Enterprises:
2010 and 2011 Partial Balance Sheets
Assets Liabilities and Owners’ Equity
2010 2011 2010 2011
Current assets $ 954 $ 1,024 Current liabilities $ 390 $ 419
Net fixed assets 3,857 4,616 Long-term debt 2,041 2,217
2011 Income Statement
Sales $ 12,720
Interest paid 200
a. What is owners’ equity for 2010 and 2011?
Owners’ equity 2010 $
Owners’ equity 2011 $
b. What is the change in net working capital for 2011?
Change in NWC $
In 2011, Parrothead Enterprises purchased $1,895 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell?
Fixed assets sold $
In 2011, Parrothead Enterprises purchased $1,895 in new fixed assets. What is the cash flow from assets for the year? (The tax rate is 35 percent.)
Cash flow from assets $
During 2011, Parrothead Enterprises raised $410 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year?
Debt retired $
During 2011, Parrothead Enterprises raised $410 in new long-term debt. What is the cash flow to creditors?
Cash flow to creditors $