Answer:
The concluding part of this question is below:
Partial Balance Sheets as of December 31, 2015 and 2016
Current Assets 2015: $2,718 2016: $2,881 Current Liabilites 2015: $1,174 2016: $1,726
Net Fixed Assets 2015: $12,602 2016: $13,175 Long Term Debt 2015: $6,873 2016: $8,019
2016 Income Statement
Sales $40,664
Costs $20,393
Depreciation $3,434
Interest paid $938
a.Owner's is the balancing figure using the equation Assets=Capital+Liabilities
Which are $7273 and $6311 respectively
b.Change in net working capital=Ending NWC-Opening NWC
=($2881-$1726)-($2718-$1174)
=$-389
C.fixed asset sold==$12602+$7160-$3434-$13175=$3153
(beginning Net Fixed Asset+purchases-depreciation-ending Net Fixed asset)
Cash flow from assets for 2016: = Cash flow from operations - Capital spending - Change in NWC
Cash flow from operations = EBIT + depreciation-taxes = $16837+$3434-$6360 = $13912
Capital spending = Ending Fixed assets -Beginning Fixed assets + depreciation = $13175-$12602+$3434 = $4007
Change in NWC = - 389 (calculated under above)
Therefore, cash flow from assets = $13912-$4007-(-)$
389 = $10,294
Total debt paid during the year = Opening debt - closing debt + new debt
=$6873-$8019+$2155 = $1009
Cash flow to creditors = Opening debt - closing debt + interest expense= $6873-$8019+$938 = -$208
Explanation:
BALANCE SHEETS 2015 2016 INCOME STATEMENT FOR 2016
Current assets 2718 2881 Sales 40664
Net fixed assets 12602 13175 Costs 20393
15320 16056 Depreciation 3434
Current liabilities 1174 1726 EBIT 16837
LT debt 6873 8019 Interest 938
Owners' equity 7273 6311 EBT 15899
(15320-1174-6873)(16056-1726-8019) Tax at 40% 6360
5320 16056 Net Income 9539
