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-   -   How to find out how much in fixed assets have been sold (https://www.askmehelpdesk.com/showthread.php?t=505934)

  • Sep 8, 2010, 02:41 PM
    student0812
    How to find out how much in fixed assets have been sold
    How do I compute how much fixed assets have been sold if I have the following information:

    Current Assets 2009: $2,665 2010: $2,824
    Net fixed assets 12,355 12,917
    Current liabilities 1,151 1,691
    Long-term debt 6,739 7,862

    2010 Income Statement:
    Sales $ 39,870
    Costs 19,994
    Depreciation 3,367
    Interest paid 624

    In 2010 $5,616 in new fixed assets were purchased. Tax Rate is 40%

    I tried adding the new fixed assets to the 2009 NFA total and then subtracting the 2010 NFA total, but am not coming up with the right answer... what am I doing wrong?
  • Sep 8, 2010, 03:25 PM
    morgaine300

    You're not taking into consideration that the current depreciation expense would have also reduced the net fixed assets. So you add the purchase, subtract the reduction from the new depreciation... but otherwise proceed as you did.
  • Sep 8, 2010, 03:29 PM
    student0812

    Oh that would make sense, haha. Thank you!
  • Sep 9, 2010, 01:59 AM
    morgaine300

    You're welcome. :)

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