Answer:
Weston Enterprises
a. 2018 2019
Owners' equity $3,187 $3,309
b. Change in net working capital for 2019 is $39.
c. The company sold $841 in fixed assets.
d. The cash flow from assets = ($2,544) + $841 = ($1,703)
e. Long-term debt paid off = $291.
f. The cash flow to creditors = 478 ($524 - 46).
Explanation:
Data and Calculations:
WESTON ENTERPRISES 2018 and 2019 Partial Balance Sheets
Assets Liabilities and Owners' Equity
2018 2019 2018 2019
Current assets $1,178 $1,263 Current liabilities $526 $572
Net fixed assets 5,707 6,023 Long-term debt 3,172 3,405
Owners' equity 3,187 3,309
Total $6,885 $7,286 Total $6,885 $7,286
WESTON ENTERPRISES 2019 Income Statement
Sales $15,490
Costs 7,171
Depreciation 1,387
Interest paid 404
2018 2019 Change
Current assets $1,178 $1,263 $85
Current liabilities $526 $572 46
Net working capital $652 $691 $39
Fixed assets:
Beginning balance 5,707
Additional purchase 2,544
Less depreciation 1,387
Balance after depre. 6,864
Ending balance 6,023
Asset sold 841
Long-term debt
Beginning balance 3,172
Additional debt 524
Debt paid off (291)
Ending balance 3,405
