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Solution 1
        Solution 1
        a.    Calculation of shareholder equity
            Asset
            Current asset    $5,700
            Net fixed asset    $27,000
            Total asset    $32,700
            Liabilities and equity
            Liabilities
            Current liability    $4,400
            Long term debt    $12,900
            Total liabilities    $17,300
            Equity
            Shareholder equity    $15,400
        B.    Calculation of working capital
            Current asset    $5,700
            Less: Current liability    $4,400
            Net working capital    $1,300
Solution 2
        Solution 2
        a.    Calculation of net income
            Revenue
            Gross sales    $387,000
            Less: cost of goods sold    $175,000
            Gross profit    $212,000
            Less: Expenses
            Interest expense    $21,000
            Net income before tax    $191,000
            Less: Tax@35%    $66,850
            Net income    $124,150
        b.    Calculation of operating cash flow
            Net income    $124,150
            Add: Interest expense    $21,000
            Operating cash flow    $145,150.00
        c.    Calculation of addition to the retained earnings
            Net income    $124,150
            Less: Dividend paid    $30,000
            Addition to retained earnings    $94,150
Solution 3
        Solution 3    Given is the following information
            Machinery purchased 3 year ago    $7,000,000
            Current value of machine    $3,200,000
            Net fixed...