Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the income statement items
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the income statement items correspond to revenues or expenses during the year ending in either 2015 or 2016. All values are in thousands of dollars 2015 2016 $4,000 1,600 $4,100 1,700 Revenue Cost of goods sold Depreciation 500 520 Inventories 300 350 Administrative expenses 500 550 Interest expense 150 150 420 Federal and state taxes* 400 Accounts payable 300 350 Accounts receivable 400 450 5,000 5,800 Net fixed assets Long-term debt Notes payable Dividends paid 2,000 1,000 2,400 600 410 410 Cash and marketable securities 800 300 Taxes are paid in their entirety in the year that the tax obligation is incurred. t Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. What was the change in net working capital during the year? (Enter your answer in thousands of dollars.) $ 50,000 Change in net working capital Construct an income statement for Fincorp for 2015 and 2016. (Enter your answers in thousands of dollars.) Fincorp Inc. Income Statement 2016 2015 0 0 0$ 0 What were reinvested earnings for 2016? (Enter your answer in thousands of dollars.) Reinvested earnings Suppose that Fincorp has 500,000 shares outstanding. What were earnings per share? (Round your answers to 2 decimal places.) 2015 2016 Earnings per share Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2016 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 $2,900. This investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 500,000 shares of stock outstanding.) (Round your answer to 2 decimal places.) Price per share Construct a statement of cash flows for Fincorp for 2016. (Negative amounts should be indicated by a minus sign.) Fincorp Inc. Statement of Cash Flows ($ in 000s) Cash flows from operations Noncash expenses Changes in working capital Total change in working capital $ 0 Cash flows from investments 0 Cash flows from financing activities $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started