Liabilities and Owners' Equity
Net fixed assets 9,504 9,936 Long-term debt $5,184 6,048
CABO WABO, INC. 2008 income Statement
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?
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
Cost of goods sold 342,531
Selling & administrative 155,916
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
Accounts receivable Inventory Current assets Net fixed assets
Accounts payable Notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity
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