Chapter 10, Problem 10.1BYP

(a)

To determine

Assets: Assets refer to those resources that an organization owns, against which the organization derives a value in the future.

Cost of Asset: Cost of an asset refers to the total amount of expenditure that is incurred to acquire the asset and to make it ready for use.

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Amortization: Amortization refers to the amount of depreciation expense charged on an intangible asset. Amortization results in the decreased value of an intangible asset.

Statement of cash flows: This statement records the inflows and outflows of cash and funds of the Company during the accounting period.

It has following three parts:

• Cash flow from operating activities
• Cash flow from investing activities
• Cash flow from financing activities.

Intangible Assets: Intangible assets refer to those assets owned by the organization which do not have a physical appearance but are used to generate a value for the business.

To identify: The total cost and book value of property, plant, and equipment on September 28, 2013.

(b)

To determine

To identify: The amount of depreciation and amortization expense for 2011-2013.

(c)

To determine

To identify: The amount of capital spending in 2013 and 2012.

(d)

To determine

To identify: The statement in which intangible assets disclosed and its types on September 28, 2013.