Chapter 9, Problem 9.1FSC

1.

To determine

Annual Report: It is a comprehensive financial report that shows all the business activities that takes place throughout the previous financial year. Its purpose is to provide the complete financial information of a company’s financial activities to its users in order to help them analyze and take well informed decisions.

To name: the depreciation method used by T Corporation for reporting in financial statements and probably for income tax purposes.

2.

To determine

To state: the amount of depreciation and amortization expense for the year ending January 30, 2016.

3.

To determine

To state: the amount of T Corporation’s additions to property, and equipment during the year ending 2016 and amount of sale proceeds from property, and equipment, if any.

4.

To determine

To state: the amount of accumulated depreciation and the net book value of property, and equipment at January 30, 2016.

5.

To determine

To compare: the asset turnover ratio of T Corporation with K Incorporation.