Financial Data for Spinaway, Inc. (Unless otherwise noted, all data is for December 31, 2020) Number of shares outstanding Sales 125,000 Average collection period (days) 60 $4,200,000 Accounts payable days 90 Gross profit margin 25% Retained earnings (Dec 31, 2019) $402,000 Inventory turnover ratio 6 Dividend payout ratio 80% Notes payable $80,000 Accruals $20,000 Net profit margin 15% Current ratio 1.2 Return on assets 7.5% Debt ratio 40% Percent of sales on credit 70% Par value per share $5.00

Q: Define Depreciation expense.

A: Managerial accounting: Managerial accounting is the process of identifying, measuring, analyzing,…

Q: Define current assets and list the typical asset categories included in this classification.

A:

Q: lassification costs

A: A long-term physical piece of property or equipment that a company owns and utilises in its…

Q: Describe classifications of long term assets.

A: Long-term assets: Long – term assets are those assets that are generally held by a company for more…

Q: A general description of the depreciation methods applicable to major classes of depreciable assets?

A: Depreciation is the allocation of cost of the asset over the useful life of the asset. Depreciation…

Q: Define each of the following terms:d. Depreciation; amortization; EBITDA

A: The formula to compute EBITDA as follows:

Q: How do you figure units-of-production method depreciation?

A: The business entities are required to charge the depreciation expense on their assets so that the…

Q: Explain estimated fixed assets

A: Introduction:- Assets are resources (property) presented in the balance sheet because for it an…

Q: Write note on current assets.

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…