Case 4.30 LO 6, 7 Capstone analytical review of Chapters 2-4. Calculate liquidity and profitability measures and explain various financial statement relationships for an excavation contractor Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) are taken from the December 31, 2016, financial statements: For the Year Ended December 31, 2016: Net revenues . . . . . $ 64,400 Cost of services provided 22,800 Depreciation expense . 13,000 Operating income . $ 28,600 Interest expense 7,600 Income tax expense 6,400 Net income . . . $ 14,600 At December 31, 2016: Assets Cash and short-term investments . . $ 5,600 Accounts receivable, net . . . . 19,600 Property, plant, and equipment, net. 154,800 Total assets . . . $180,000 Liabilities and Stockholders' Equity Accounts payable . . 3,000 Income taxes payable . . . . 3,200 Notes payable (long term) . . 95,000 Paid-in capital . . . . 20,000 Retained earnings . .. 58,800 Total liabilities and stockholders' equity . . $180,000 At December 31, 2015, total assets were $164,000 and total stockholders' equity was $65,200. There were no changes in notes payable or paid-in capital during 2016. Required: a. The cost of services provided amount includes all operating expenses (selling, general, and administrative expenses) except depreciation expense. What do you suppose the primary reason was for management to separate depreciation from other operating expenses? From a conceptual point of view, should depreciation be considered a "cost" of providing services? b. Why do you suppose the amounts of depreciation expense and interest expense are so high for Gerrard Construction Co.? To which specific balance sheet accounts should a financial analyst relate these expenses? e. Calculate the amount of total current assets. Why do you suppose this amount is so low, relative to total assets