A) If you happen to know for a fact that this company sold fixed assets for $6,0

Question

A) If you happen to know for a fact that this company sold fixed assets for $6,000 over the year, how much in fixed assets must they have purchased?

B) If you happen to know for a fact that this company repurchased $2,000 in shares of stock over the year, how much m ust they have issued in new stock?

Income Statement 2013 2014 Sales 2100 Cost of Good Sold 1200 Other Operating Expenses 200 Depreciation Expenses 225 Interest Expenses 175 EBT 300 Tax 105 PAT 195 Dividend 68.25 Retained Earnings 126.75 Balance Sheets 2013 2014 Current Assets 1000 1300 Total Fixed Assets 3500 4000 Accumulated Depreciation 1250 1475 Net Fixed Assets 2250 2525 Total Assets 3250 3825 Current Liabilities 900 975 Long-term Debt 1500 1350 Total Liabilities 2400 2325 Common Stock 400 923.25 Retained Earnings 450 576.75 Total Shareholders Equity 850 1500 Total Liabilities + common stock 3250 3825

Explanation / Answer

A)Calculation value of fixed assets Purchased

B) Calculation of common stock issued

Fixed Assets Closing 4000 Add : Sales 6000 10000 Less : Opening 3500 Purchased Fixed Assets 6500

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