1. Near year end‚ P‚ a cash basis‚ calendar year taxpayer‚ paid for various deductible expenses as described below. 1. The payment was dropped in the mail before year end. 2. P gave a note evidencing her promise to pay the amount in three months. 3. The amount was charged on her Master Card on December 28. The charge appeared on her bill for the period December 1 through December 31‚ which she received in January and which she paid on January 20. The bank actually paid the expense in January
Premium Taxation in the United States Expense Operating expense
receivable ($49‚625 - $65‚000) (15‚375) Increase in inventory ($252‚500 - $273‚750) (21‚250) Decrease in prepaid expenses ($6‚250 - $5‚375) 875 Decrease in accounts payable ($116‚625- $88‚125) (28‚500) Depreciation expense 18‚750 Loss on disposal of equipment 5‚125 Net cash provided by operating activities $33‚375 Cash flows from investing activities Cash received from sale of equipment 13‚625 Cash paid for equipment
Premium Dividend Generally Accepted Accounting Principles Accounts receivable
CHAPTER 10 Acquisition and Disposition of Property‚ Plant‚ and Equipment ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises 1‚ 2‚ 3‚ 4‚ 5‚ 13 Concepts Problems for Analysis 1. Valuation and classification of land‚ buildings‚ and equipment. 1‚ 2‚ 3‚ 4‚ 6‚ 7‚ 12‚ 13‚ 15‚ 21 2. Self-constructed assets‚ capitalization of overhead. 5‚ 8‚ 20‚ 21 4‚ 6‚ 12‚ 16 3. Capitalization of interest. 8‚ 9‚ 10‚ 11‚ 2‚ 3‚ 4 13‚ 21 4‚ 5‚ 7‚ 8‚ 9‚ 10‚ 16 1‚ 5‚ 6‚ 7 3 4. Exchanges
Premium Depreciation Generally Accepted Accounting Principles
information. The policy that is chosen must be applied to a whole class of assets May change policy‚ but only if results in more relevant/ reliable information The cost model • AASB 116 requires that assets are carried at cost less any accumulated • depreciation • impairment losses • Repair and maintenance costs are expensed as incurred‚ not capitalised – • Capitalisation requires (at time of expenditure) increased probable future economic benefit – 3
Premium Depreciation Generally Accepted Accounting Principles
incremental cash flows‚ because the incremental cash flows will be marginal benefits from this project and increased value to the company. (Cite study paper) Although depreciation is a non-cash expense‚ it does affect the level of the differential cash flow‚ because it is a tax-deductible expense. The higher the depreciation expense‚ the lower the firms profits will be. (Keown Martin‚ Petty 11) Sunk costs do not affect the determination of cash flow in this proposal. Our concern would
Premium Cash flow Net present value Investment
changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. In the 1984 the corporation computed depreciation expense on plants‚ machinery and equipment by using the straight-line method for financial reporting purposes. These changes were made to provide a more equitable allocation of the cost of the plants. 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? Harnischfeger
Premium Depreciation Income statement Pension
Coca Cola Company is one of the biggest global manufacturer‚ marketer‚ and distributor of non alcoholic beverages. The company sells concentrates and syrups to authorized canning and bottling operators. Coca Cola company products include sparkling‚ juices‚ beverages‚ and bottled water. Around 75% of the coca cola revenue is international‚ and 53% are concentrate and syrup sales of Coke brands. Coca cola markets in world’s top five brands Coke‚ Diet Coke‚ Sprite‚ and Fanta. Coca-Cola is the most
Premium Coca-Cola Generally Accepted Accounting Principles Depreciation
Case Introduction Fonderia di Torino S.P.A‚ founded in 1912 by Benito Cerini‚ was a manufacturing company which produced metal castings using semi-automated molding machines. The company’s main line of business was the production of precision metal castings for use in automotive‚ aerospace‚ and construction equipment. The company excelled at this and was awarded because of the quality of its products. The mainly European customers of Fonderia di Torino were original-equipment manufacturers (OEM)
Premium Depreciation Expense Costs
stated at cost less accumulated depreciation and impairment (if any). But‚ In this report there are not any impairments.Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred‚ cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.Depreciation is provided on plant and equipment. Depreciation is calculated on a straight-line
Premium Depreciation Generally Accepted Accounting Principles Asset
1. What managerial issues (including profitability‚ market and competition‚ economy‚ control and partnership with JTL) should David Grant consider before starting the Caribbean Internet Café (CIC)? Take a couple of pages to discuss these issues since understanding the numbers is only part of the decision making process. The managerial issues that David Grant should be considering before going into business for himself in Kingston are abundant every aspect of the business should be scrutinized before
Premium Variable cost Costs Management accounting