As of December 31, 2010 total assets were $8,000, total liabilities were $3,500 and contributed capital was $1,500. The only other component of equity as of 12/31/10 was retained earnings.
During the year ended December 31, 2011 the company acquired $450 worth of treasury stock using cash and also declared and paid a cash dividend of $200. These were the only transactions with the owners during the year. And there was no other comprehensive income during the year.
Also during the year ended December 31, 2011 total assets increased by $2,400, including a $400 increase in cash and cash equivalents and a $600 increase in property, plant and equipment – net of accumulated depreciation. Operating cash flows were $700, investing cash flows were ($800) and depreciation expense was $125. Retained earnings at 12/31/11 was $3,000.
1. How much retained earnings did the company have at 12/31/10?
2. What was the value of total assets at 12/31/11?
3. Assuming no retirements, how much was spent on property plant & equipment during the year?
4. How much debt did the company take on (repay) during the year?
5. Is the stock market high or low right now?