The table below contains data on Fincorp Inc. The balance sheet items correspond

Question

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 2016 $4,000 $4,100 1,700 520 350 550 150 420 350 450 5,800 2,400 600 410 300 2015 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 1,600 500 300 500 150 400 300 400 5,000 2,000 1,000 410 800 * 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 Construct an income statement for Fincorp for 2015 and 2016. (Enter your answers in thousands of dollars.) Fincorp Inc. Income Statement 2015 2016 What were reinvested earnings for 2016? (Enter your answer in thousands of dollars.) Reinvested earnings

Explanation / Answer

Income statement 2015 2016

Revenue 4000 4100

Costofgoods 1600 1700

Gross profit 2400 2400

Administrative 500 550

EBITDA 1900 1850

Depreciation 500 520

EbIT 1400 1330

Interest 150 150

Profit before tax 1250 1180

Tax 400 420

Net income 850 760

Dividends paid 410 410

Reinvested earnings 440 350

Common equity inclusing retained earnings at the end of 2015 is 3200

Common equity including retained earnings at the end if 2016 is 2900

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