ED#1101 Calculating Owners’ Equity, Net Working Capital, Fixed Assets, Long Term Debt, and Cash Flow
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
PARROTHEAD ENTERPRISES
2011 Income Statement
Sales $ 12,720
Costs 6,060
Depreciation 1,080
Interest paid 200
a. What is owners’ equity for 2010 and 2011?
Owners’ equity 2010 $
Owners’ equity 2011 $
b. What is the change in networking capital for 2011?
Change in NWC $
c-1
In 2011, Parrothead Enterprises purchased $1,895 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell?
Fixed assets sold $
c-2
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 $
d-1
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 $
d-2
During 2011, Parrothead Enterprises raised $410 in new long-term debt. What is the cash flow to creditors?
Cash flow to creditors $
