Financial Accounting Question Henderson Technologies, Inc. provided the following forecasted financial datafor Year 3:.Sales Revenue $75,000Cost of Goods Sold (COGS) - $58,500Other Operating Expenses = $5,200Interest Expense = $1,100Depreciation Expense (varies by method)The company is considering two different depreciation methods:1. Straight-Line Depreciation - $4,000 per year2. Double-Declining Balance (DDB) Depreciation - $6,500 for Year 3Required: Prepare an income statement for Year 3 under each depreciationmethod, ending at Income before Income Tax Expense.

Step 1: Definition of Income StatementAn Income Statement is a financial document that shows a…

Answered: Henderson Technologies, Inc. provided…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1CP

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Company A has sales of $830, costs of $290 (not including depreciation), depreciation expense of $40, interest expense of $40, and a tax rate of 21 percent, current assets of $260, net fixed assets of $1850, current liabilities of $240, and long-term debt of $700. What is the total asset turnover? (keep two decimal places) Your Answer: 0.39
At the end of its financial year, Tanner Co had the following non-current assets: Land and buildings at cost $10.4 million Land and buildings: accumulated depreciation $0.12 million Tanner Co decided to revalue its land and buildings at the year-end to $15 million. What will be the value of the revaluation surplus if the revaluation is accounted for? %24
Aneko Company reports the following: net sales of $17,500 for Year 2 and $16,625 for Year 1; end-of-year total assets of $18,000 for Year 2 and $16,500 for Year 1. 1. Compute its total asset turnover for Year 2. 2. Aneko's competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its total asset turnover for Year 2. Choose Numerator: 1 1 1 Total asset turnover Choose Denominator: = = = Total asset turnover Total asset turnover times
Given the following information for O'Hara Marine Co., calculate the depreciation expense: sales = $67,000; costs = $34,500; addition to retained earnings = $8,300; dividends paid = $2,320; interest expense = $2,650; tax rate = 21 percent. (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) What is the depreciation expense?
Given the following information for Sookie’s Cookies Co., calculate the depreciation expense: sales = $96,581; costs = $67,448; addition to retained earnings = $1,079; dividends paid = $329; interest expense = $1,641; tax rate = 37 percent. (Hint: Build the Income Statement and fill in the missing pieces until you get to the depreciation expense. You may have to work from bottom up.)
Aneko Company reports the following: net sales of $18,000 for Year 2 and $17,100 for Year 1; end-of-year total assets of $18,200 for Year 2 and $16,800 for Year 1. Compute its total asset turnover for Year 2. Aneko’s competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover?
A company report stated that a $140,000 asset purchased 3 years ago has a current MACRS book value that is 57.6% of the asset’s basis. (a) Determine the recovery period used. (b) Determine the depreciation next year using the VDB spreadsheet function.
What is the annual depreciation charge of this financial accounting question?
In January 2009, the Status Quo Company was formed. Total assets were $593,000, of which $351,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $35,100 per year, and in 2009 it estimated its fixed assets to have useful lives of 10 years. Aftertax Income has been $43,000 per year each of the last 10 years. Other assets have not changed since 2009. a. Compute return on assets at year-end for 2009, 2011, 2014, 2016 and 2018 Note: Input your answers as a percent rounded to 2 decimal places. Year 2009 2011 2014 2016 2019 Return on Assets % % % % b. To what do you attribute the phenomenon shown in part a Increase in current assets Annual depreciation charges Increase in market share. Return on assets will be 4 c. Now assume income increased by 10 percent each year. What effect would this have on your answers to perta?
1. A set of office equipment costs $100,000 and has a useful life of 6 years. Its estimated market value at the end of the 6th year is $5,000. Determine the depreciation amount on the 4th year and the book value at the end of the 3rd year using: a. Straight Line Method b. Double Declining Balance Method c. Sum- of - Years Digits Method d. Declining Balance Method with Switchover to SL e. MACRS GDS (assume that the assets will be disposed of on the 3rd year) f. MACRS ADS
Quantum Electronic Services paid P = $40,000 for its networked computer system. Both tax and book depreciation accounts are maintained. The annual tax depreciation rate is based on the previous year’s book value (BV), while the book depreciation rate is based on the original first cost (P). Use the rates listed to plot annual depreciation and book values for each method. Develop the graphs using hand calculations or a spreadsheet, as directed by your instructor.
With direct write off, one writes off amounts from sales in the past are determined to be uncollectible. An estimate writes off estimated amounts of current sales that are expected to be uncollectible. Does that help you determine the accounting principle used for estimates? And a fixed asset question: when an asset is fully depreciated (think Kate's Cards after four years when the equipment with cost of $4,800 has accumulated depreciation of $4,800), should a company keep it on the books? Why or why not?

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