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Using Financial Statements for 2018-2019. Net book value for 2018 is $8,025,800. TRUE OR FALSE

Using Financial Statements for 2018-2019. Net book value for 2018 is $8,025,800. TRUE OR FALSE

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question 76
 

Using Financial Statements for 2018-2019. Net book value for 2018 is $8,025,800.

TRUE OR FALSE 

 

**Financial Statements Overview** The image presents a detailed view of financial statements for two consecutive years, 2019 and 2018. It includes a balance sheet and an income statement. ### Balance Sheet #### Assets - **Current Assets:** - Cash increased from $4,900,000 in 2018 to $5,100,000 in 2019. - Marketable Securities were $98,000 in 2018 and remained the same in 2019. - Accounts Receivable rose slightly from $1,568,000 to $1,632,000. - Inventories remained constant at $2,744,000. - **Total Current Assets** increased from $9,310,000 to $9,690,000. - **Fixed Assets:** - Property, Plant, & Equipment remained stable at $3,136,000. - Other Fixed Assets increased from $2,597,000 in 2018 to $2,703,000 in 2019. - **Total Fixed Assets** increased from $5,733,000 to $5,839,000. - **Total Assets** grew from $15,043,000 to $15,657,000. #### Liabilities & Equity - **Current Liabilities:** - Accounts Payable increased from $1,805,160 to $1,878,840. - Notes Payable increased from $1,654,730 to $1,722,270. - Accrued Expenses Payable rose from $1,353,870 to $1,409,130. - Accrued Taxes Payable increased slightly from $1,203,440 to $1,252,560. - **Total Current Liabilities** rose from $6,017,200 to $6,262,800. - **Long-Term Debt:** - Increased from $752,150 to $782,850. - **Total Liabilities** increased from $6,769,350 to $7,045,650. - **Stockholder’s Equity:** - Preferred Stock remained constant at $1,053,010 and increased to $1,095,990. - Common Stock increased from $1,955,590 to $2,035,410. - Paid-In Capital in Excess of Par increased from $4,061,610 to $4,227
Transcribed Image Text:**Financial Statements Overview** The image presents a detailed view of financial statements for two consecutive years, 2019 and 2018. It includes a balance sheet and an income statement. ### Balance Sheet #### Assets - **Current Assets:** - Cash increased from $4,900,000 in 2018 to $5,100,000 in 2019. - Marketable Securities were $98,000 in 2018 and remained the same in 2019. - Accounts Receivable rose slightly from $1,568,000 to $1,632,000. - Inventories remained constant at $2,744,000. - **Total Current Assets** increased from $9,310,000 to $9,690,000. - **Fixed Assets:** - Property, Plant, & Equipment remained stable at $3,136,000. - Other Fixed Assets increased from $2,597,000 in 2018 to $2,703,000 in 2019. - **Total Fixed Assets** increased from $5,733,000 to $5,839,000. - **Total Assets** grew from $15,043,000 to $15,657,000. #### Liabilities & Equity - **Current Liabilities:** - Accounts Payable increased from $1,805,160 to $1,878,840. - Notes Payable increased from $1,654,730 to $1,722,270. - Accrued Expenses Payable rose from $1,353,870 to $1,409,130. - Accrued Taxes Payable increased slightly from $1,203,440 to $1,252,560. - **Total Current Liabilities** rose from $6,017,200 to $6,262,800. - **Long-Term Debt:** - Increased from $752,150 to $782,850. - **Total Liabilities** increased from $6,769,350 to $7,045,650. - **Stockholder’s Equity:** - Preferred Stock remained constant at $1,053,010 and increased to $1,095,990. - Common Stock increased from $1,955,590 to $2,035,410. - Paid-In Capital in Excess of Par increased from $4,061,610 to $4,227
Expert Solution
Step 1

Net book value or net asset value is the value of asset after adjusting the depreciation charges applied on it.

Net book value = Original price – Accumulated depreciation

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