Consider the following abbreviated financial statements for
Parrothead Enterprises:
Parrothead
Enterprises
2017 and 2018 Partial
Balance Sheet
Assets Liabilities
& Owners Equity
2017
2018
2017
2018
Current...
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Finance
Consider the following abbreviated financial statements forParrothead Enterprises:
ParrotheadEnterprises
2017 and 2018 PartialBalance Sheet
Assets Liabilities& Owners Equity
2017
2018
2017
2018
Current assets
$1230
$1339
Current liabilities
$510
$565
Net fixed assets
$5001
$6032
Long-term debt
$2672
$2843
Parrothead Enterprises
2018 Income Statement
Sales
15490
Costs
7171
Depreciation
1387
Interest paid
404
a.
What is owners' equity for 2017 and 2018? (Do not roundintermediate calculations.)
b.
What is the change in net working capital for 2018? (Donot round intermediate calculations.)
c-1.
In 2018, Parrothead Enterprises purchased $2,544 in new fixedassets. How much in fixed assets did Parrothead Enterprises sell?(Do not round intermediate calculations.)
c-2.
In 2018, Parrothead Enterprises purchased $2,544 in new fixedassets. What is the cash flow from assets for the year? The taxrate is 24 percent. (Do not round intermediatecalculations.)
d-1.
During 2018, Parrothead Enterprises raised $524 in newlong-term debt. How much long-term debt must Parrothead Enterpriseshave paid off during the year? (Do not round intermediatecalculations.)
d-2.
During 2018, Parrothead Enterprises raised $524 in newlong-term debt. What is the cash flow to creditors? (Do notround intermediate calculations.)
a
Owners' equity 2017
Owners' equity 2018
b
Change in NWC
c-1
Fixed assets sold
c-2
Cash flow from assets
d-1
Debt retired
d-2
Cash flow to creditors
Answer & Explanation
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3.8 Ratings (474 Votes)
a Owners Equity 2017 3049 Owners Equity 2018 3963 b Change in NWC 54 c1 Fixed assets sold 126 c2 Cash flow from assets 4280 d1 Debt retired 353 d2 Cash flow to creditors 233
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