2. (TCO A) During 2010, Steele Corporation sold merchandise costing $1,500,000 on an installment basis for $2,000,000. The cash receipts related to these sales during 2010 were $800,000.What is the amount of deferred gross profit Steele Corporation will report on Dec 31, 2010?…
From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892.)…
Company A started with $250,000 and increased in revenue by 10% each year up to 5 years. Therefore, at the end of 5 years the revenue totaled $146,410. We subtracted the annual expenses from the yearly revenue to determine the profit before depreciation or the profit before the drop in value. Depreciation moves the cost of an asset to depreciation expense during the asset 's useful life. Depreciation expense results when the purchase price of a fixed asset is reduced over time, or its useful life (Keown, Martin, & Petty, 2014). In Corporation A, the Depreciation expense is $5,000 a year. We deducted the $5,000 year depreciation from the profit to obtain the profit before tax. The tax rate of 25% was deducted from the profit before tax to find the net income. The 5 Year Projected Cash Flow is the net income plus the…
Part 3 Annual rate of return Accounting income as result of decreased costs Annual cash savings Less Depreciation Before tax income Tax at 35% rate After tax income $26351/200,000 = Part 4 Net Present Value Item Cost of machine Cost of training Annual cash savings Tax savings due to depreciation Disposal value Net Present Value Year 0 0 1-5 1-5 5…
Refer to the Dow Chemical financial statements for 2008 in answering the following: 1. Who are Dow’s external auditors? Describe the two opinion letters that Dow received for 2008. In your own words, explain what these opinions mean. Why are the opinions dated several weeks after Dow’s year end? 2. Use a spreadsheet to construct common-size income statements for 2008 and 2007. (Note: common-size income statements are constructed by dividing each income statement item by net sales). a. Was the company profitable during 2008? During 2007? What does the term “profitable” mean? b. Compute the percentage change in net sales and in net income from 2007 to 2008. c. What are Dow’s major categories of expenses? Do you detect any significant changes in the structure of costs in 2008 compared to 2007? d. Dow shows separate lines on the income statement for goodwill impairment losses, restructuring charges, purchased in-process research and development charges, acquisition-related expenses and asbestos-related credits. Why do you think the company chose not to just include all of the amounts within the line item for “Selling, general and administrative expenses.” e. How would the percentages you computed in part 2b change if the items in part 2d were excluded in measuring net income. (Caution: the items listed in part 2d are shown before tax, while net income is shown after tax. Be sure to adjust your answer accordingly, using the statutory tax rate of 35%.) f. In a single sentence, explain why Dow’s profitability changed from 2007 to 2008. 3. Refer to the statement of cash flows. a. Compare…
1. Question : Carlton Company sold equipment for $3,700 that originally cost $22,000. The balance of the Accumulated Depreciation account related to this equipment was $19,000. The entry to record the disposal of this equipment would include a debit to Loss on Sale of Equipment of $700. credit to Gain on Sale of Equipment of $700. credit to Equipment of $3,000. debit to Gain on Sale of Equipment of $700. 0 of 2…
B) The amount of depreciation expense in 2009 is $1,104 (millions), 2010 is $1,093 and 2011 is $1,086.…
FIN 534 – Homework Chapter 2 Directions: Answer the following five questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. Each question is worth five points apiece for a total of 25 points for this homework assignment. 1. Which of the following statements is CORRECT? c. If a firm is more profitable than average (e.g., Google), we would normally expect to see its stock price exceed its book value per share. 2. Which of the following statements is CORRECT? e. The statement of cash flows shows how much the firm’s cash--the total of currency, bank deposits, and short-term liquid securities (or cash equivalents)--increased or decreased during a given year. 3. Which of the following statements is CORRECT? e. If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance. 4. Last year Roussakis Company’s operations provided a negative net cash flow, yet the cash shown on its balance sheet increased. Which of the following statements could explain the increase in cash, assuming the company’s financial statements were prepared under generally accepted accounting principles? d. The company sold some of its fixed assets. 5. Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow? c. $746.00…
2. What are the total assets at the end of the previous annual reporting period?…
3. What is the effect of the depreciation lives change? How will this change affect future reported…
Han and Rome were two great empires that had similarities and differences. Han and Rome at a similar decline because of the lack of a stable economy. The different political systems caused Han and Rome to rise differently.…
7. A company's annual accounting period ends on December 31. During the current year a depreciable asset which cost $24,000 was purchased on October 1. The asset has a $1,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a 6-year life. What is the total depreciation expense for the current year? (Points : 1)…
Access the internet to acquire a copy of the most recent annual report for the public traded company used to complete the Financial Reporting Problem, Part 1 assignment due in week Four. Analyze the information contained in the company’s balance sheet and income statement to answer the following questions:…
2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years?…
| A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.…