Consider the following abbreviated financial statements for Cabo Wabo, Inc.: a. What is owners' equity for 2007

Consider the following abbreviated financial statements for Cabo Wabo, Inc.:

a. What is owners' equity for 2007 and 2008?

b. What is the change in net working capital for 2008?

c. In 2008, Cabo Wabo purchased $4,320 in new fixed assets. How much in fixed assets did Cabo Wabo sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)

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 tocreditors?

Transcribed Image Text:

CABO WABO, INC.:. CABO WA8O, INC. Partiál Baiänce Sheets as of December 31 2007 and 2008 2008 Income Statement 30,670 15.380 2,590 480 2007 2008 Sales Costs Depreciation tnterest paid 2007 2008 Liabilities and Ovners Equity Assets Cucrent asses $2050 $2,172 Current liabilities $ 885 $1301 Net fixed assets 9,504 9,936 Long-term debt $5,184 6,048 -um"