How Much In Fixed Assets Did Cabo Wabo Sell

Assets

Current assets

Liabilities and Owners' Equity

Current liabilities

885 $1,301

Net fixed assets 9,504 9,936 Long-term debt $5,184 6,048

CABO WABO, INC. 2008 income Statement

Sales Costs

Depreciation Interest paid

$30,670 15,380 2,590 480

a. What is owners' equity for 2007 and 2008?

b. What is the change in net working capital for 2008?

c. In 2008, Cabo Wabo purchased $4,320 in new fixed assets. How much in fixed assets did Cabo Wabo sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)

d. During 2008, Cabo Wabo raised $1,300 in new long-term debt. How much long-term debt must Cabo Wabo have paid off during the year? What is the cash flow to creditors?

23. Cash Flow Identity. Find Your Way Back, inc., reported the following financial statements for the last two years. Construct the cash flow identity for the company.

Explain what each number means.

2008 Income Statement

Sales $706,500

Cost of goods sold 342,531

Selling & administrative 155,916

Depreciation 68,220

EBIT $139,833

Interest 24.120

EBT $115,713

Taxes 40.499

Net Income $ 75,214

Dividends $ 12,000

Addition to retained earnings $ 63,214

FIND YOUR WAY BACK, INC. Balance Sheet as of December 31, 2007

Cash

Accounts receivable Inventory Current assets Net fixed assets

Total assets

Accounts payable Notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity

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Responses

  • duenna
    How much longterm debt must cabo wabo?
    9 years ago
  • nebay
    How much in fixed assets did cabo wabo sell?
    8 years ago
  • doderic
    How much longterm debt must Cabo Wabo have paid off during the year?
    8 years ago
  • john williams
    How much fixed asset did he sell?
    8 years ago
  • arnaldo
    How much in fixed assets did the firm sell?
    8 years ago
  • jennifer
    What is the cash flow from assets for the year Cabo Wabo?
    8 years ago
  • Lleyton
    How much long term debt must cabo wabo have paid off during the year?
    8 years ago
  • anniina riipinen
    How much in fixed assets sold?
    8 years ago
  • rosa
    How much in fixed assets did the company sell?
    2 years ago

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