A. What evidence do you see in Exhibit 3.35 of Prime’s strategic shift from refuse to animal care services? Aside from year 8‚ Prime is generating persistent and large net income figures. However‚ during year 8 there is a large amount of depreciation‚ signifying large capital investments. Specifically‚ in years 6 through 7 the company invested roughly $3M in fixed assets. Based on this information I would say that the company was preparing for growth and purchased the assets to jump into the
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Financial Reporting under IFRS and US GAAP | | | University of Economics in Prague | | | Financial Reporting under IFRS and US GAAP | Property‚ Plant and Equipment Content Introduction - The companies 2 Specific Questions 5 Sources 19 Introduction - The companies AUTOMOTIVE INDUSTRY GENERAL MOTORS as representative of U.S. GAAP General Motors from the U.S. Detroit is‚ together with Toyota‚ the largest car manufacturer in the world. The company was established in 1908
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income statement‚ but instead appears as a debit on the long-term assets account and a credit on the cash account of the balance sheet. However‚ the depreciation expense related to the capitalized cost will appear as an expense on the income statement. Since the long-term assets account is larger due to the effect of capitalization‚ the depreciation costs are also proportionately larger. Thus‚ the timing of expense recognition is changed‚ but eventually all expenses do get recognized on the income
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direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false‚ briefly explain why. a. Both the direct and indirect methods will produce the same cash flow from operating activities. True b. Depreciation expense is added back to net income when the indirect method is used. True c. One
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Analysis of Cash Flow - Planet Karaoke Pub figures in baht Yr. 0 Rental income less less less Depreciation Increase in repair and maintenance expenses Decrease in net room revenue Additional Operating Income less Taxes NOPAT add less Depreciation Capital Expenditure Operating Cash Flow Discounted Operating Cash Flow @ 10.75% Yr. 1 Yr. 2 2‚040‚000 2‚040‚000 -192‚500 -192500 -10‚000 -10‚000 -1‚650‚000 -1‚683‚000 187‚500 -56‚250 131‚250 192‚500 -770‚000 -770‚000 -770‚000 323‚750 292‚325 300‚650 245
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Cost Segregation is the use of accelerated depreciation methods on certain assets in order to increase depreciation expense‚ which lowers taxable income and therefor increases cash flow. For this cost recovery system‚ it is procedure to classify components of property‚ for example a building‚ into different categories‚ and depreciate them accordingly. According to the Journal of Accountancy (journalofaccountancy.com‚ cost segregation begins at the time of purchase. At this time‚ the client who
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2009 balance sheet showed net fixed assets of $1.65 million‚ and the 2010 balance sheet showed net fixed assets of $1.73 million. The company’s 2010 income statement showed a depreciation expense of $284‚000. What was Gordon’s net capital spending for 2010? Net capital spending = (Ending NFA – Beginning NFA) + Depreciation Net capital spending = $1‚730‚000 – 1‚650‚000 + 284‚000 Net capital spending = $364‚000 3. Building an Income Statement. During the year‚ the Senbet Discount Tire
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Other Issues Pro Forma Financial Statements and Project Cash Flows Getting Started: Pro Forma Financial Statements Project Cash Flows Projected Total Cash Flow and Value More about Project Cash Flow A Closer Look at Net Working Capital Depreciation Evaluating Equipment Options with Different Lives Project Cash Flows Relevant Cash Flows Cash flows that occur (or don ’t occur) because a project is undertaken. Cash flows that will occur whether or not we accept a
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IAS 16‚ Property‚ plant and equipment By Graham Holt Studying this technical article and answering the related questions can count towards your verifiable CPD if you are following the unit route to CPD and the content is relevant to your learning and development needs. One hour of learning equates to one hour of CPD. We ’d suggest that you use this as a guide when allocating yourself CPD units. Property plant and equipment (PPE) are tangible assets that an entity holds for its own use or for
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Understanding the long-term investment in China Introduction Every country has its own rules and regulations according to the needs‚ requirements and environment of the business in that country. So for any company‚ thinking to expand the span of business to another country and wants to invest for long term in that country‚ especially where production in that country involves‚ it is very important to understand the business environment‚ government policies‚ restrictions and future perspective
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