34. Balance Sheet. Examine the values for depreciation in 2014 and net fixed ass

Question

34. Balance Sheet. Examine the values for depreciation in 2014 and net fixed assets in 2013 and 2014. What was Fincorp's gross investment in plant and equipment during 2014?

35. Book versus market value. Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2014 is $6,000 and that the value of its long-term debt is only $2,200. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its employees are worth $2,900. The investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock?

Fincorp Inc. 2013 2014 $A,000.00 S4,100.00 1,600.001,700.00 500.00 520.00 300.00 350.00 500.00 550.00 150.00 150.00 Revenue Depreciation Inventories Admin Expenses Interest Exp Fed and state taxes Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 400.00 300.00 400.00 350.00 5,000.00 5,800.00 2,000.00 2,400.00 1,000.00 600.00 10.00410.00 800.00 30o.00

Explanation / Answer

Q34

Fixed Asset as on end of 2013 = 5000

Fixed Asset as on end of 2014 = 5800

Difference is 800

Plus Depreciation of asset as on 2014=520

Total 800 + 520 = 1320

Q 35 - NA

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