Respuesta :
Answer:
a. What is owners’ equity for 2018 and 2019?
owners' equity 2018 = $8,435
owners' equity 2019 = $7,381
b. What is the change in net working capital for 2019?
-$463
c-1. In 2019, the company purchased $8,038 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell?
net capital spending = $14,511 - $14,060 + $3,885 = $4,336
net capital spending = fixed assets purchased - sold
$4,336 = $8,038 - fixed assets sold
fixed assets sold = $3,702
c-2. What is the cash flow from assets for the year?
operating cash flow = EBIT + depreciation - taxes = $18,593 + $3,885 - $4,276 = $18,202
cash flow from assets = operating cash flow - change in net working capital - net capital spending = $18,202 - (-$463) - $4,336 = $14,329
d-1. During 2019, the company raised $2,479 in new long-term debt. What is the cash flow to creditors?
new long term debts = $8,419 (2019) - $7,377 (2018) = $1,042
cash flow form creditors = new long term debts - interests = $1,042 - $995 = $47
d-2. How much long-term debt must the company have paid off during the year?
new long term debts = new debt - retired debt
$1,042 = $2,479 - retired debt
retired debt = $2,479 - $1,042 = $1,437