Consider the following abbreviated financial statements for Parrothead Enterprises:
a. What is owners’ equity for 2010 and 2011?
b. What is the change in net working capital for 2011?
c. In 2011, Parrothead Enterprises purchased $1,890 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)
- 縣議員Lv 45 年前最佳解答
a. use balance sheet：Assets=Liabilities+Equites
b. Net Working Capital=Current Assets-Current Liabilities
2010：Net Working Capital=914-365=549
2011：Net Working Capital=990-410=580
change in Net Working Capital=580-549=31
c. balance sheet：net fixed assets increase 4,536-3,767=769
However, Parrothead Enterprises purchased 1,890 new fixed assets. So we can infer that some fixed assets had been sold, the amount is 1,890-769=1,121
Cash flow from assets for 2011=EBIT*(1-T)+Depreciation-investment