Depreciation : Depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset. It helps in readjusting the actual cost of the particular asset o which the depreciation is applied. Total Asset Turnover Ratio: Total asset turnover ratio is a ratio which is used to check the effectiveness and efficiency of the business operations and is computing by dividing net sales by total assets. 1. To compute: The amount of original cost of A’s property and equipment.

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Answer 1

Question

Chapter 8, Problem 1BTN

To determine

Depreciation:

Depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset. It helps in readjusting the actual cost of the particular asset o which the depreciation is applied.

Total Asset Turnover Ratio:

Total asset turnover ratio is a ratio which is used to check the effectiveness and efficiency of the business operations and is computing by dividing net sales by total assets.

1.

To compute: The amount of original cost of A’s property and equipment.

2.

To determine

To identify: The length of time the machinery and equipment are depreciating.

3.

To determine

The change in property and equipment before depreciation.

4.

To determine

To compute: Total assets turnover ratio.

5.

To determine

To compute: Total asset turnover ratio for the year 2016.

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The following data were selected from the records of Fluwars Company for the year ended December 31, current year: Balances at January 1, current year: Accounts receivable (various customers) $ 111,500 Allowance for doubtful accounts 11,200 The company sold merchandise for cash and on open account with credit terms 1/10, n/30, without a right of return. The following transactions occurred during the current year: Sold merchandise for cash, $252,000. Sold merchandise to Abbey Corp; invoice amount, $36,000. Sold merchandise to Brown Company; invoice amount, $47,600. Abbey paid the invoice in (b) within the discount period. Sold merchandise to Cavendish Inc.; invoice amount, $50,000. Collected $113,100 cash from customers for credit sales made during the year, all within the discount periods. Brown paid its account in full within the discount period. Sold merchandise to Decca Corporation; invoice amount, $42,400. Cavendish paid its account in full after the…

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Answer 2

Question

Chapter 8, Problem 1BTN

To determine

Depreciation:

Depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset. It helps in readjusting the actual cost of the particular asset o which the depreciation is applied.

Total Asset Turnover Ratio:

Total asset turnover ratio is a ratio which is used to check the effectiveness and efficiency of the business operations and is computing by dividing net sales by total assets.

1.

To compute: The amount of original cost of A’s property and equipment.

2.

To determine

To identify: The length of time the machinery and equipment are depreciating.

3.

To determine

The change in property and equipment before depreciation.

4.

To determine

To compute: Total assets turnover ratio.

5.

To determine

To compute: Total asset turnover ratio for the year 2016.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 1BTN

To determine

Depreciation:

Depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset. It helps in readjusting the actual cost of the particular asset o which the depreciation is applied.

Total Asset Turnover Ratio:

Total asset turnover ratio is a ratio which is used to check the effectiveness and efficiency of the business operations and is computing by dividing net sales by total assets.

1.

To compute: The amount of original cost of A’s property and equipment.

2.

To determine

To identify: The length of time the machinery and equipment are depreciating.

3.

To determine

The change in property and equipment before depreciation.

4.

To determine

To compute: Total assets turnover ratio.

5.

To determine

To compute: Total asset turnover ratio for the year 2016.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 1BTN

To determine

Depreciation:

Depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset. It helps in readjusting the actual cost of the particular asset o which the depreciation is applied.

Total Asset Turnover Ratio:

Total asset turnover ratio is a ratio which is used to check the effectiveness and efficiency of the business operations and is computing by dividing net sales by total assets.

1.

To compute: The amount of original cost of A’s property and equipment.

2.

To determine

To identify: The length of time the machinery and equipment are depreciating.

3.

To determine

The change in property and equipment before depreciation.

4.

To determine

To compute: Total assets turnover ratio.

5.

To determine

To compute: Total asset turnover ratio for the year 2016.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 1BTN

To determine

Depreciation:

Depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset. It helps in readjusting the actual cost of the particular asset o which the depreciation is applied.

Total Asset Turnover Ratio:

Total asset turnover ratio is a ratio which is used to check the effectiveness and efficiency of the business operations and is computing by dividing net sales by total assets.

1.

To compute: The amount of original cost of A’s property and equipment.

2.

To determine

To identify: The length of time the machinery and equipment are depreciating.

3.

To determine

The change in property and equipment before depreciation.

4.

To determine

To compute: Total assets turnover ratio.

5.

To determine

To compute: Total asset turnover ratio for the year 2016.

Answer 6

Chapter 8, Problem 1BTN

To determine

Depreciation:

Depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset. It helps in readjusting the actual cost of the particular asset o which the depreciation is applied.

Total Asset Turnover Ratio:

Total asset turnover ratio is a ratio which is used to check the effectiveness and efficiency of the business operations and is computing by dividing net sales by total assets.

1.

To compute: The amount of original cost of A’s property and equipment.

Answer 7

Chapter 8, Problem 1BTN

To determine

Depreciation:

Depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset. It helps in readjusting the actual cost of the particular asset o which the depreciation is applied.

Total Asset Turnover Ratio:

Total asset turnover ratio is a ratio which is used to check the effectiveness and efficiency of the business operations and is computing by dividing net sales by total assets.

1.

To compute: The amount of original cost of A’s property and equipment.

Answer 8

2.

To determine

To identify: The length of time the machinery and equipment are depreciating.

Answer 9

2.

To determine

To identify: The length of time the machinery and equipment are depreciating.

Answer 10

3.

To determine

The change in property and equipment before depreciation.

Answer 11

3.

To determine

The change in property and equipment before depreciation.

Answer 12

4.

To determine

To compute: Total assets turnover ratio.

Answer 13

4.

To determine

To compute: Total assets turnover ratio.

Answer 14

5.

To determine

To compute: Total asset turnover ratio for the year 2016.

Answer 15

5.

To determine

To compute: Total asset turnover ratio for the year 2016.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 8 - Prob. 1MCQ Ch. 8 - Prob. 2MCQ Ch. 8 - A company purchased machinery for $10,800,000 on...Ch. 8 - Prob. 4MCQ Ch. 8 - Prob. 5MCQ Ch. 8 - Prob. 1DQ Ch. 8 - What is the general rule for cost inclusion for...Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ

Solution Summary: The author explains that depreciation is the amount of decrease in the value of an asset within a set time period due to wear and tear of that particular asset.

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To identify: The length of time the machinery and equipment are depreciating.

The change in property and equipment before depreciation.

To compute: Total assets turnover ratio.

To compute: Total asset turnover ratio for the year 2016.

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Chapter 8 Solutions