8 consider the following abbreviated financial

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8. 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 $ 942 $ 1,000 Current liabilities $ 380 $ 413 Net fixed assets 3,847 4,592 Long-term debt 2,028 2,187 PARROTHEAD ENTERPRISES 2015 Income Statement Sales $12,150 Costs 5,850 Depreciation 1,090 Interest paid 190 A. What is owners' equity for 2014 and 2015?
B. What is the change in net working capital for 2015? 562
MGMT 304-Fall 2016 Practice Questions for Midterm Exam #1 Samer Ryan Semaan C. In 2015, Parrothead Enterprises purchased $1,865 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.)
MGMT 304-Fall 2016 Practice Questions for Midterm Exam #1 Samer Ryan Semaan OCF = $4,543 And the cash flow from assets is: Cash flow from assets = OCF Change in NWC Net capital spending Cash flow from assets = $4,543 25 1,835 Cash flow from assets = $2,683 D. During 2015, Parrothead Enterprises raised $390 in new long-term debt. How much long- term debt must Parrothead Enterprises have paid off during the year? What is the cash flow to creditors? 159

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