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Question: Calculating Cash Flows. Consider the following abbreviated financial statements for Cabo Wabo, Inc.:

a. What is owners' equity for 2015 and 2016?

b. What is the change in net working capital for 2016?

c. In 2016, Cabo Wabo purchased $7,160 in new fixed assets. How much in fixed assets did the company sell? What is the cash flow from assets for the year? (The tax rate is 40 percent.)

d. During 2016, Cabo Wabo raised $2,155 in new long-term debt. How much long-term debt must the company have paid off during the year? What is the cash flow to creditors?

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