Bus 603-01

Managerial Accounting

Ch 4.

Case 14-3

	Fiscal Year Ended
	March 31, 2003	March 31, 2002	March 31, 2001
Capitalized direct-response advertising	48,409	42,478	31,466
Direct-response advertising amortization	36,460	30,306	19,604
Increase in direct-response advertising asset, net	11,949	12,172	11,862
Beginning direct-response advertising asset, net	52,112	39,940	28,078
Ending direct-response advertising asset, net	64,061	52,112	39,940
Record direct-response advertising as expense
Ending direct-response advertising asset, net	64,061	52,112	39,940

Use row 11 to record the direct-response advertising as an expense and then compare the "expensed" set of financials to the "capitalized" set to see the impact. Do not expense more than is currently capitalized. I.e. row 10 represents the current capitalized asset and is updated each time a change is made. Row 12 should never be less than $0 otherwise you have overstated your expense