amortized depreciation subtracted out to get the net amount of PP&E that is put on the balance sheet c.) In the notes to the financial statements‚ Palfinger reports the plant‚ property and equipment of the following: • Land and equipment • Undeveloped buildings and investments • Plant and machinery • Other plant‚ fixtures‚ fittings‚ and equipment • Payments and assets under construction d.) “Prepayments and assets under construction” represents expenses that have
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of 1984 Step 1: Identify Principal Accounting Policies First‚ it is important to point out some key accounting policies noted in the financial statements of Harnischfeger Corporation for later analysis. The company uses a straight line depreciation method on its capital assets‚ but just began using this method in 2004; this will be the subject of later analysis to discuss the impact of the change on the company’s financial status. Harnischfeger Corporation funds its pension accounts at the
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Periodic Inventory System Perpetual Inventory System Purchases xxx Accounts Payable Purchase of merchandise on account Merchandise Inventory Accounts Payable Purchase of merchandise on account xxx Accounts Payable Merchandise Inventory Return of merchandise xxx Accounts Receivable Cost of Sales Sales Merchandise Inventory Sale of merchandise on account xxx xx Sales Returns and Allowances Merchandise Inventory Accounts Receivable Cost of Sales Return of merchandise xxx xx xxx xxx Merchandise
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market and develop the product are $5 million. The product is expected to generate profits of $1 million per year for 10 years. The company will have to provide product support expected to cost $100‚000 per year in perpetuity. Assume all profits and expenses occur at the end of the year. a. What is the NPV of this investment if the cost of capital is 6%? Should the firm undertake the project? Repeat the analysis for discount rates of 2% and 12%. b. How many IRRs does
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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
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Executive summary Do D’ Dips is a potential company that will introduce‚ munchkins dip into different flavors‚ soon in the market. Our company offers high priced munchkins at its unique and matchless features. We are targeting some specific segments that will help us reach out for more opportunities in the market having the food as a basic human need. We aim to be the market leader in the chocolate industry in Davao. According to our survey‚ most of the respondents have sweet taste preference but
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............................. Req. 2 Cash collections for 2008 2 were $5‚711 million. Allowance for Uncollectible Accounts 20 Beg. 5 Bad debt Write-offs ? expense 13 End. 12 12 Accounts Receivable Beg. 558 Sales 5‚710 ? Collections ? Write-offs End. 545 - = Net Realizable Value 538 532 1 Beg. allowance $20 + Bad debt expense $5 – Write-offs ? = End. Allowance $13 Write-offs = $12 2 Beg. accounts receivable $558 + Sales $5‚710 – Write-offs $12 – Collections ? = End. accounts receivable
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assets = operating profit/total assets Return on equity = net profit / total equity Coverage Debt to total assets = total debt / total assets Times interest earned (interest coverage ratio)= income before interest and taxes / interest expenses Case 2 Liquidity Current ratio = current assets/current liabilities Acid-test ratio = (current assets – inventory)/curr. liab. Efficiency Receivables turnover = (credit) sales / average accounts receivables Inventory
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325 Expenses: Salary expense $1‚550 Depreciation expense 675 Rent expense 1‚200 Supplies expense 1‚250 Insurance expense 1‚000 Miscellaneous expense 715 Interest expense 65 Bad Debt expense 150 Repairs and Maintenance 200 Utilities expense 150 Payroll Tax expense 125 Office expense 525 Total expenses 7‚605 Net income $ 16‚720 In the income statement depreciation expense has not been included. The balance sheet shows a depreciation of $675 which is an expense SHEILA
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flow statement 40 10-18 Inventory appraisal system 15 10-19 Composite amortization system 15 10-20 Composite amortization system 25 10-21 Amortization systems 25 10-22 Accounting for capital assets 45 continued ... Assignment 10-23 Depreciation and depletion—schedule‚ entries (*W) 25 10-24 Asset impairment – five situations 20 10-25 Asset impairment 15 10-26 Asset impairment (*W) 20 10-27 Asset group impairment 15 10-28 Asset group impairment 15 10-29 Capital asset impairment
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