Consider the following abbreviated financial statements for Weston Enterprises: WESTON ENTERPRISES 2018 Statement of Comprehensive Income Sales

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Consider the following abbreviated financial statements for Weston Enterprises:

WESTON ENTERPRISES 2017 and 2018 Partial Statement of Financial Position Assets Liabilities and shareholders' equity 2017 2018 2017 2018 Current assets $ 936 $1,015 Current liabilities $ 382 $ 416 Net fixed assets 4,176 4,896 Long-term debt 2,160 2,477


WESTON ENTERPRISES
   2018 Statement of
Comprehensive Income
Sales .....................$12,380
Costs....................... 5,776
Depreciation .........1,150
Interest paid ...........314


a. What is the shareholders’ equity for 2017 and 2018?

b. What is the change in net working capital for 2018?

c. In 2018, Weston Enterprises purchased $2,160 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 40 percent.)
d. During 2018, Weston Enterprises raised $432 in new long-term debt. How much longterm debt must Weston Enterprises have paid off during the year? What is the cash flow to creditors?

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Corporate Finance

ISBN: 9781259270116

8th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss

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