1. During year t, Parrothead Enterprises raised £270 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year?Long-term debt paid off 2. What is the cash flow from financing activities?Cash flow from financing activities Consider the following abbreviated financial statements for Parrothead Enterprises:Parrothead Enterprisest-1 and t Partial Balance SheetsAssetsLiabilities and Owners' EquityYearYearYearYeart-1t-1Current assets653707Current liabilities261293Non-current assets2,6913,240Non-current liabilities1,4221,512Parrothead EnterprisesYear t Income Statement8,2803,861738SalesCostsDepreciationInterest paid211

1. Net new borrowing =Non current liabilities for year t – Non currennt liabilities for year…

1. During year t, Parrothead Enterprises raised £270 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? Long-term debt paid off 2. What is the cash flow from financing activities? Cash flow from financing activities

1. During year t, Parrothead Enterprises raised £270 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? Long-term debt paid off 2. What is the cash flow from financing activities? Cash flow from financing activities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. During year t, Parrothead Enterprises raised £270 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year?

Long-term debt paid off

2. What is the cash flow from financing activities?

Cash flow from financing activities

Consider the following abbreviated financial statements for Parrothead Enterprises:
Parrothead Enterprises
t-1 and t Partial Balance Sheets
Assets
Liabilities and Owners' Equity
Year
Year
Year
Year
t-1
t-1
Current assets
653
707
Current liabilities
261
293
Non-current assets
2,691
3,240
Non-current liabilities
1,422
1,512
Parrothead Enterprises
Year t Income Statement
8,280
3,861
738
Sales
Costs
Depreciation
Interest paid
211

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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