Q1. Balance Sheet: Construct a balance sheet for Fincorp for 2013 and 2014. What is Shareholder's equity?

2013 2014

4000 4100 Revenue

1600 1700 Cost of goods sold

500 520 Depreciation

300 350 Inventories

500 550 Administrative expenses

150 150 Interest expense

400 420 Federal and state taxes*

300 350 Accounts Payable

400 450 Accounts Receivable

5000 5800 Net fixed assets

2000 2400 Long-term debt

1000 600 Notes payable

410 410 Dividends paid

800 300 Cash and marketable securities

Q2. Working capital : What was the change in net working capital during the year?

Q3. Income statement: Construct an income statement for Fincorp for 2013 and 2014. What were reinvested earnings for 2014?

Q4. Earnings per share: Suppose that Fincorp has 500,000 shares outstanding. What were earnings per share?

Q5. 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?

Q6. Income versus cash flows: Construct a statement of cash flows for Fincorp for 2014.

Q5. Book versus Market value: Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2014 is $6000 and that the value of its long-term debt is only $2,200. In addition, the consensus among investors is that Fincorp's past investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock?