Question
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 2019 Revenue $ 4,200 $ 4,300 Cost of goods sold 1,700 1,800 Depreciation 460 480 Inventories 350 395 Administrative expenses 540 590 Interest expense 110 110 Federal and state taxes* 470 490 Accounts payable 310 340 Accounts receivable 380 420 Net fixed assets 5,600 6,210 Long-term debt 2,700 3,140 Notes payable 780 520 Dividends paid 320 320 Cash and marketable securities 730 360 * Taxes are paid in their entirety in the year that the tax obligation is incurred. Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Construct an income statement for Fincorp for 2018 and 2019. (Enter your answers in thousands of dollars.) Examine the values for depreciation in 2019 and net fixed assets in 2018 and 2019. What was Fincorps gross investment in plant and equipment during 2019?
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