Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Income Statement (in millions) Sales 2018 $12,000 2019 $15,000 COGS (7,200) (8,000) SG&A Depreciation (700) (1,000) (1,200) (1,600) Interest expense Taxes (tax rate = 40%)

image text in transcribed Income Statement (in millions) Sales 2018 $12,000 2019 $15,000 COGS (7,200) (8,000) SG&A Depreciation (700) (1,000) (1,200) (1,600) Interest expense Taxes (tax rate = 40%) (1,300) (1,200) (640) (1,280) Net income $960 $1,920 Balance Sheet (in millions) 31/12/2018 31/12/2019 Cash and marketable securities $2,000 $2,200 Accounts receivable 3,000 3,500 Inventory 4,000 4,200 Total current assets $9,000 $9,900 PP&E, gross $22,000 $24,300 Accumulated depreciation (9,000) (10,500) PP&E, net $13,000 $13,800 Total assets $22,000 $23,700 Accounts payable $2,400 $2,640 Short-term debt 1,600 1,760 Total current liabilities $4,000 $4,400 Long-term debt $15,000 $15,004 Total liabilities $19,000 $19,404 Common stock $2,000 $2,300 Retained earnings 1,000 1,996 Total equity $3,000 $4,296 Total liabilities and equity $22,000 $23,700 Suppose within interest expense in 2019, there is a gain on equipment sold of $25 million. Besides, there is a capital expenditure of $2,560 million in 2019. 1. In 2019, the company would report a gross value of equipment sold equal to $ million [1]; accumulated depreciation of equipment sold equal to $ million [2]; a net book value millon13] 2. Cash proceeds from equipment sold in 2019= of equipment sold equal to $ million [4]. $ 3. CFI = $ million [5] in 2019image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Communication Essentials

Authors: Courtland Bovee

4th Canadian Edition

0133508706, 978-0133508703

More Books

Students also viewed these Accounting questions