22. Calculating Cash Flows [LO4] Consider the following abbreviated financialstatements for Parrothead Enterprises:PARROTHEAD ENTERPRISES2008 and 2009 Partial Balance SheetsPARROTHEAD ENTERPRISES2009 Income StatementAssetsLiabilities and Owners' EquitySales$8,2802008200920082009Costs3,861Current assets$ 653 $ 707 Current liabilities $ 261$ 293Depreciation738Net fixed assets2,6913,240 Long-term debt1,4221,512Interest paid211a. What is owners' equity for 2008 and 2009?b. What is the change in net working capital for 2009?c. In 2009, Parrothead Enterprises purchased $1,350 in new fixed assets. Howmuch in fixed assets did Parrothead Enterprises sell? What is the cash flow fromassets for the year? (The tax rate is 35 percent.)

22. Calculating Cash Flows [LO4] Consider the following abbreviated financial statements for Parrothead Enterprises: PARROTHEAD ENTERPRISES 2008 and 2009 Partial Balance Sheets PARROTHEAD ENTERPRISES 2009 Income Statement Assets Liabilities and Owners' Equity Sales $8,280 2008 2009 2008 2009 Costs 3,861 $ 653 $ 707 Current liabilities $ 261 3,240 Long-term debt Current assets $ 293 Depreciation 738 Net fixed assets 2,691 1,422 1,512 Interest paid 211 a. What is owners' equity for 2008 and 2009? b. What is the change in net working capital for 2009? c. In 2009, Parrothead Enterprises purchased $1,350 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)

22. Calculating Cash Flows [LO4] Consider the following abbreviated financial statements for Parrothead Enterprises: PARROTHEAD ENTERPRISES 2008 and 2009 Partial Balance Sheets PARROTHEAD ENTERPRISES 2009 Income Statement Assets Liabilities and Owners' Equity Sales $8,280 2008 2009 2008 2009 Costs 3,861 $ 653 $ 707 Current liabilities $ 261 3,240 Long-term debt Current assets $ 293 Depreciation 738 Net fixed assets 2,691 1,422 1,512 Interest paid 211 a. What is owners' equity for 2008 and 2009? b. What is the change in net working capital for 2009? c. In 2009, Parrothead Enterprises purchased $1,350 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter7: Introduction To Financial Statement Analysis

Section: Chapter Questions

Problem 31P

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