Consider the following abbreviated financial statements for Weston Enterprises:

 WESTON ENTERPRISES
2020 Income Statement
Sales....................$17,259
Costs.......................5,113
Depreciation.........1,472
Interest paid...........618

a. What was owners’ equity for 2019 and 2020?

b. What was the change in net working capital for 2020?

c. In 2020, the company purchased $3,050 in new fixed assets. How much in fixed assets did the company sell? What was the cash flow from assets for the year? The tax rate is 25 percent.

d. During 2020, the company raised $697 in new long-term debt. How much long-term debt must the company have paid off during the year? What was the cash flow to creditors?

Transcribed Image Text:

WESTON ENTERPRISES 2019 and 2020 Partial Balance Sheets Assets Liabilities and Owners' Equity 2019 2020 2019 2020 Current assets $1,173 $1,260 Current liabilities $ 523 $ 570 Net fixed assets 5,702 6,019 Long-term debt 3,168 3,399