Question

Consider the following abbreviated financial statements for Barrie Enterprises: BARRIE Enterprises 2017 and 2018 Partial Statement...

Consider the following abbreviated financial statements for Barrie Enterprises:

BARRIE Enterprises
2017 and 2018 Partial Statement of Financial Position
Assets Liabilities and Owner's Equity
2017 2018 2017 2018
Current assets $ 920 $ 996 Current liabilities $ 368 $ 417
Net fixed assets 3,827 4,596 Long-term debt 2,021 2,150
BARRIE Enterprises
2018 Statement of Comprehensive Income
Sales $ 11,900
Costs 5,437
Depreciation 1,063
Interest paid 300

a. What is owner's equity for 2017 and 2018? (Omit $ sign in your response.)

Owner's equity 2017 $
Owner's equity 2018 $

b. What is the change in net working capital for 2018? (Omit $ sign in your response.)

Change in NWC           $

c1. In 2018, Barrie Enterprises purchased $1,923 in new fixed assets. How much in fixed assets did Barrie Enterprises sell? (Omit $ sign in your response.)

Fixed assets sold           $

c2. In 2018, Barrie Enterprises purchased $1,923 in new fixed assets. What is the cash flow from assets for the year? (The tax rate is 35%.) (Omit $ sign in your response.)

Cash flow from assets           $

d1. During 2018, Barrie Enterprises raised $384 in new long-term debt. How much long-term debt must Barrie Enterprises have paid off during the year? (Omit $ sign in your response.)

Debt retired           $

d2. During 2018, Barrie Enterprises raised $384 in new long-term debt. What is the cash flow to creditors? (Omit $ sign in your response.)

Cash flow to creditors           $

Business   Accounting   
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Homework Answers

Answer #1

a. Owner;s Equity = Total Assets - Total Liabilities
2017 = $920+3827-368-2021 = $2358
2018 = $996+4596-417-2150 = $3025

b. Net Working Capital = Current Assets - Current Liabilities
2017 = $920-368 = $552
2018 = $996 - 417 = $579
Change in NWC = $579-552 = $27 (Increase)

c1.
Fixed Assets sold = $3827+1923 - 4596 - 1063 = $91

c2.
Cash flow from assets = $91, since information about loss or profit on sale is not given

d1.
Debt Retired = $2021 + 384 - 2150 = $255

d2.
Cash flow to creditors = $255 + 300 = $555

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