NARRBEGIN: Cold Weather Sports
Cold Weather Sports,Inc.(CWS)
Cold Weather Sports,Inc.(CWS)just completed its 2012 fiscal year.During the year,CWS had sales of $10,000 and total expenses (no interest expenses were incurred)of $6,000.Assume that CWS pays 30% of its EBIT in taxes and that depreciation expense of $1,200 is included in the total expense number listed above.A list of some balance sheet items for CWS for end of fiscal year 2011 and 2012 is as below.
No fixed assets were disposed of during the year.
-What was the dollar amount of fixed assets purchased during the year for Cold Weather Sports?

Question

NARRBEGIN: Cold Weather Sports
Cold Weather Sports,Inc.(CWS)
Cold Weather Sports,Inc.(CWS)just completed its 2012 fiscal year.During the year,CWS had sales of $10,000 and total expenses (no interest expenses were incurred)of $6,000.Assume that CWS pays 30% of its EBIT in taxes and that depreciation expense of $1,200 is included in the total expense number listed above.A list of some balance sheet items for CWS for end of fiscal year 2011 and 2012 is as below.
   No fixed assets were disposed of during the year.
-What was the dollar amount of fixed assets purchased during the year for Cold Weather Sports?

Quizplus · Accepted Answer

5,600 - 5,000 + 1,200 = 1,800