12/31/2014 Current Assets Fixed Assets Total Assets Sales COGS Dep EBIT Interest

Question

12/31/2014 Current Assets Fixed Assets Total Assets Sales COGS Dep EBIT Interest EBT 2014 7500 5500 500 1500 5000 Current Liabilities Long Term Debt CommonEquity Total 500 2000 laxeS 5000 Net Income Dividends were 500, Capital Expenditures were 700, Ending Stock Price was S20 per share and there were 400 shares outstanding. Taxes are 40% of EBT 2014 60 2.5 2014 10% Current Ratio Debt Ratio Times Int. Em FATO TATO Profit Margin ROA BEP P/E MB Question-18: How much did the firm have in Fixed Assets at the end of the previous year (or t t of this year)?

Explanation / Answer

Ans:

For finding the Fixed asset at the begning of the year, we need to find out Current asset at the begning of the year which can be calculated as follows:

Current Ratio = Current Assets/Current Liabilities

4= Current Asset/500

Current Asset = 500*4 = 2000

So as given in the balance sheet, total assets are 5000, in which current assets are 2000 so Fixed asset at the begning of the year is 5000-2000= $3000

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