Calculating Cash Flows - Consider the following abbreviated financial statements for Weston Enterprises: WESTERN ENTERPRISES 2009 and 2010 Partial Balance sheet WESTERN ENTERPRISES 2010 Income...


Calculating Cash Flows - Consider the following abbreviated financial statements for Weston Enterprises:












































WESTERN ENTERPRISES 2009 and 2010 Partial Balance sheet



WESTERN ENTERPRISES 2010 Income Statement



Assets



Liabilities and Oweners " Equity



Sale



$10,320



2009



2010



2009



2010



Costs



4,980



Current assets



$780



$846



Current Liabilities



$318



$348



Depreciation



$960



Net fixed assets



3,480



4,080



Long - Term debt



1,800



2,064



Interest paid



259



1. What is owners’ equity for 2009 and 2010?


2. What is the change in net working capital for 2010?


3. In 2010, Weston Enterprises purchased $1,800 in new fixed assets. How much in fixed assets did Weston Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)


4. During 2010, Weston Enterprises raised $360 in new long-term debt. How much long-term debt must Weston Enterprises have paid off during the year? What is the cash flow to creditors?


Use the following information for Ingersoll, Inc., for Problems 23 and 24 (assume the tax rate is 34 percent):











































































2009



2010



Sale



$5,223



$5,606



Depreciation



750



751



Cost of goods sold



1,797



2,040



Other Expenses



426



356



Interest



350



402



Cash



2,739



2,085



Account receivable



3,626



4,085



Short - term notes payable



529



947



Long - term debt



9,173



10,702



Net fixed assets



22,970



23,518



Accont payable



2,877



2,790



Inventory



6,447



6,625



Dividends



637



701


Nov 11, 2021
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