total revenues. To estimate expenses‚ we are given the breakdown of fixed and variable expenses for each of the expense items. The fixed expenses increase by the inflation rate‚ whereas the variable expenses adjust with the change in revenue. Depreciation is given as constant and interest expense is also taken as constant as we have not decided on the financing of the EFN. In addition some new expenses are added due to the new initiatives. This includes salaries for four national accounts managers
Premium Generally Accepted Accounting Principles Balance sheet Asset
accounting h. Managerial accounting i. Financial Accounting j. Managerial accounting 10-3 Classifying Costs: Product or G‚ S‚ & A/ Asset or Expense a. Production supplies- Product cost‚ asset b. Depreciation on Administrative Building- G‚ S‚ & A‚ expense c. Depreciation on manufacturing equipment – Product cost‚ expense d. Research and development costs- G‚ S‚ & A‚ Expense e. Cost to set up manufacturing equipment – Product cost‚ asset f. Utilities used in factory-
Premium Costs Variable cost Management accounting
Income | | $0.8 | $2 | $2 | $2 | $2 | $2 | | + | Operating Saving | | $2 | $3.5 | $3.5 | $3.5 | $3.5 | $3.5 | | - | Depreciation | | $3 | $3 | $3 | $3 | $3 | $3 | | | EBIT | | -$0.2 | $2.5 | $2.5 | $2.5 | $2.5 | $2.5 | | - | Tax (40%) | | -$0.08 | $1 | $1 | $1 | $1 | $1 | | | EAT | | -$0.12 | $1.5 | $1.5 | $1.5 | $1.5 | $1.5 | | + | Add back Depreciation | | $3 | $3 | $3 | $3 | $3 | $3 | | | Total Operating Cash Flow | | $2.88 | $4.5 | $4.5 | $4.5 | $4.5 | $4.5 | |
Premium Investment Net present value Capital accumulation
information include: a. b. c. 4. d. observing e. classifying The financial statement or statements that pertain to a stated period of time is (are) the: a. b. c. d. e. 3. interpreting reporting purchasing accumulated depreciation depreciation expense sales revenue d. e. marketing expense interest expense A brand new company has a building costing $10‚000‚ machinery costing $5‚000‚ cash of $700‚ and a bank loan of $7‚850. What is the owner’s equity? a. b. c.
Premium Balance sheet Generally Accepted Accounting Principles Accounts receivable
were other critical factors to address before moving forward with the project. One of the most important factors to consider was the rumored new tax legislation that would‚ “(1) eliminate the investment tax credit for new equipment; (2) extend depreciation lives for new equipment; and (3) reduce the corporate tax rate from 46% to 34% beginning in 1986. (Harvard‚ 1991)” Therefore‚ the financial problem facing Paperco is what is the Net Present Value (NPV) of replacing its existing mechanical drying
Premium Net present value Depreciation Discounted cash flow
reasons why the cash position for the business does not equal to the profit for the period. By showing the spreadsheet‚ two financial statements and looking into theories of matching principle‚ prepayments and accruals‚ provisions(bad debts and depreciation)‚ it is not hard to distinguish the cash flow from the profit. Content It is vital to understand the cash position and the profit do not necessarily go together when running business. Profitable businesses still can go out of business because
Premium Balance sheet Generally Accepted Accounting Principles Depreciation
truck and an overhead pulley system‚ in this year’s capital budget. The projects are independent. The cash outlay for the truck is $17‚100 and that for the pulley system is $22‚430. The firm’s cost of capital is 14%. After-tax cash flows‚ including depreciation‚ are as follows: Year | Truck | Pulley | 1 | $5‚100 | $7‚500 | 2 | 5‚100 | 7‚500 | 3 | 5‚100 | 7‚500 | 4 | 5‚100 | 7‚500 | 5 | 5‚100 | 7‚500
Premium Depreciation Generally Accepted Accounting Principles Net present value
Corporation ………… $1‚000‚000.00 IFRS adjustments: Add: Reversal of inventory cost written down to replacement cost….. 10‚000.00 Less: Additional depreciation of building after 2011 revaluation…….. (25‚000.00) Impairment loss on intangible assets…………… (5‚000.00) Add: Deferred research and development costs…….. 80‚000.00
Premium Generally Accepted Accounting Principles Depreciation Balance sheet
stock lowers the stock outstanding‚ it is subtracted from Stockholders’ Equity so that the stockholders’ net equity is for outstanding shares only. Treasury stock is‚ in essence‚ a reduction in paid-in capital. 3-36: Which depreciation method will result in the most depreciation over the life of an asset? Irrespective of the
Premium Generally Accepted Accounting Principles Balance sheet Asset
statements In 1984 they changed the depreciation method from accelerated methods to the straight-line for financial reporting purposes. This change included a adjustment of the residual values on certain machinery and equipment. They also included the products purchased from Kobe Steel‚ LTD and sold by them in their net sales. Moreover‚ they also included the financial statements of some foreign subsidiaries. 2. What is the effect of the depreciation accounting method change on the reported
Premium Depreciation Income statement Pension