Question

# Consider the following abbreviated financial statements for Cabo Wabo, Inc.:    CABO WABO, INC. Partial Balance...

Consider the following abbreviated financial statements for Cabo Wabo, Inc.:

 CABO WABO, INC. Partial Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015 2016 Assets Liabilities and Owners’ Equity Current assets \$ 2,753 \$ 2,890 Current liabilities \$ 1,107 \$ 1,658 Net fixed assets 12,509 13,060 Long-term debt 6,596 7,818
 CABO WABO, INC. 2016 Income Statement Sales \$ 40,090 Costs 20,082 Depreciation 3,444 Interest paid 657

a. What is owners’ equity for 2015 and 2016? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

 Owners’ equity 2015 \$ 2016 \$

b. What is the change in net working capital for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Change in net working capital            \$

c. In 2016, the company purchased \$5,891 in new fixed assets. The tax rate is 30 percent.

1. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Fixed assets sold            \$

2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow from assets            \$

d. During 2016, the company raised \$1,855 in new long-term debt.

1. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to creditors            \$

2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Debt retired            \$

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