Calculating Cash Flows Consider the following abbreviated financ

Calculating Cash Flows Consider the following abbreviated financial statements for Parrot head


a. What is owners€™ equity for 2006 and 2007?

b. What is the change in net working capital for 2007?

c. In 2007, Parrot head Enterprises purchased $1,500 in new fixed assets. How much in fixed assets did Parrot head Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)

d. During 2007, Parrot head Enterprises raised $300 in new long-term debt. How much long-term debt must Parrot head Enterprises have paid off during the year? What is the cash flow tocreditors?

PARROTHEAD ENTERPRISES 2006 and 2007 Partial Balance Sheets PARROTHEAD ENTERPRISES 2007 Income Statement Liabilities and

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Cash Flow From Assets
Cash flow from assets is the aggregate total of all cash flows related to the assets of a business. This information is used to determine the net amount of cash being spun off by or used in the operations of a business. The concept is comprised of...