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 |
$944 |
$1,004 |
Current liabilities |
$380 |
$413 |
| Net fixed assets |
3,877 |
4,596 |
Long-term debt |
2,031 |
2,192 |
| PARROTHEAD ENTERPRISES2015 Income Statement |
| Sales |
$12,245 |
| Costs |
5,885 |
| Depreciation |
1,000 |
| Interest paid |
180 |
a. What is owners' equity for 2014 and 2015?
b. What is the change in net working capital for 2015?
c-1. In 2015, Parrothead Enterprises purchased $1,870 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell?
c-2. In 2015, Parrothead Enterprises purchased $1,870 in new fixed assets. What is the cash flow from assets for the year? (The tax rate is 35 percent.)
d-1. During 2015, Parrothead Enterprises raised $400 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year?
d-2. During 2015, Parrothead Enterprises raised $400 in new long-term debt. What is the cash flow to creditors?