Answers are given in the bracket. please show all the steps. 7. Assets Current assets Net fixed

  Answers are given in the bracket. please show all the steps.

Transcribed Image Text:

7. Assets Current assets Net fixed assets 2021 $1,089 4,144 2022 Consider the following abbreviated financial statements for Parrothead Enterprises: 2022 and 2021 Partial Balance Sheets Liabilities and Owners' Equity 2021 2022 $1,005 4,990 Current liabilities $ 402 $ 451 Long-term debt 2,190 2,329 2022 Income Statement Sales Costs Depreciation Interest paid $12,751 5,946 1,136 323 (a) Calculate owners' equity for 2021 and 2022. (b) Calculate the change in net working capital for 2022. (c) Calculate the cash flow from assets for 2022, assume 21% tax rate. (d) Calculate the (i) cash flow to creditors, and (ii) cash flow to stockholders for 2022. Parrothead Enterprises paid off $210 in new long-term debt, calculate (iii) the amount of long-term debt that Parrothead Enterprises must have issued during the year. 7. Assets Current assets Net fixed assets 2021 $1,089 4,144 2022 Consider the following abbreviated financial statements for Parrothead Enterprises: 2022 and 2021 Partial Balance Sheets Liabilities and Owners' Equity 2021 2022 $1,005 4,990 Current liabilities $ 402 $ 451 Long-term debt 2,190 2,329 2022 Income Statement Sales Costs Depreciation Interest paid $12,751 5,946 1,136 323 (a) Calculate owners' equity for 2021 and 2022. (b) Calculate the change in net working capital for 2022. (c) Calculate the cash flow from assets for 2022, assume 21% tax rate. (d) Calculate the (i) cash flow to creditors, and (ii) cash flow to stockholders for 2022. Parrothead Enterprises paid off $210 in new long-term debt, calculate (iii) the amount of long-term debt that Parrothead Enterprises must have issued during the year.

Answer rating: 100% (QA)

lets solve this problem stepbystep a Calculate owners equity for 2021 and 2022 Owners equity Total assets Total liabilities For 2021 Total assets Curr... View the full answer