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What is the change in net working capital

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Reference no: EM13962941

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?

Reference no: EM13962941

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