[student0812]

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?

[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.

[student0812]

Oh that would make sense, haha. Thank you!

[morgaine300]

You're welcome. :)