Aishti Company Income Statement For the Year Ended December 31, 2020 Aishti Company Balance Sheet For the Year Ended December 31, 2019 & 2020 2020 2019 Assets Cash Accounts Receivable Inventories Plant & Equipment Less: Acc Depreciation $2,415 S5,040 Revenues $94,500 $5.355 S6,195 $10,290 S10,080 $32,970 S22,575 ($15,960) (S9,135) $35,070 S34,755 Less: Depreciation expense $6,825 Less. Other operating expenses 74,550 Total Assets Less: Interest Expense 3,990 Liabilities & O/E Accounts Payable Income Tax Payable Long-Term Debt Common Stock Retained Earnings Total Liabilities and O/E $3,885 $5,775 $2,940 $1,260 $8,715 $9,555 $11.550 S14,175 Income before income taxes $9,135 Income tax expense $3,197 Net income $5,938 $8,820 $3,150 $35,070 534,755
Aishti Company Income Statement For the Year Ended December 31, 2020 Aishti Company Balance Sheet For the Year Ended December 31, 2019 & 2020 2020 2019 Assets Cash Accounts Receivable Inventories Plant & Equipment Less: Acc Depreciation $2,415 S5,040 Revenues $94,500 $5.355 S6,195 $10,290 S10,080 $32,970 S22,575 ($15,960) (S9,135) $35,070 S34,755 Less: Depreciation expense $6,825 Less. Other operating expenses 74,550 Total Assets Less: Interest Expense 3,990 Liabilities & O/E Accounts Payable Income Tax Payable Long-Term Debt Common Stock Retained Earnings Total Liabilities and O/E $3,885 $5,775 $2,940 $1,260 $8,715 $9,555 $11.550 S14,175 Income before income taxes $9,135 Income tax expense $3,197 Net income $5,938 $8,820 $3,150 $35,070 534,755
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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