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Can somebody please help me better understand the questions in bold???? my answers don't seem correct at all i need to know if i'm doing
Can somebody please help me better understand the questions in bold????
my answers don't seem correct at all i need to know if i'm doing this right
Comm 217 chapter 9 9.4 - 9.7 9.4 Compute the approximate remaining useful life of the largest component of property, plant and equipment. If you are unable to compute this number, identify the missing information. Depreciation Method: Straight Line Largest component of Property, Plant and Equipment: Buildings (10-50 years estimated remaining useful life) Computation: (cost - residual value) x (1/ Useful life) Unable to compute this number because we are missing the following information: residual value, and original cost of the building. Annual Report 2015 page 33 section G 9.5 Did the company disclose any information about asset impairment? If so, what was the impairment loss for the current year, and does that number mean? Yes, the company did disclose information regarding asset impairment. The impairment loss for the current year was $958 as disclosed in the Statement of Cash flows under the account impairment loss on available-for-sale financial assets (Page 29). This means that the company has assessed the \"possibility that the carrying amounts of tangible and intangible assets may not be recoverable\" to be $958 (2015 Annual Report, page 21). 9.6 Did the company acquire any businesses during the current year or the previous year? If so, what was the total cost of acquisition and what percentage of that cost was attributed to goodwill? No, Reitmans did not acquire any businesses during the current or the previous year (2015-2014) 9.7 Refer to the company's statement of cash flows 1. What was the effect of depreciation/amortization expense on cash flows from operating activities? Compute the percentage of depreciation/amortization expense to cash flows from operating activities for each of the last three years and comment on the results. There was an inflow of cash of $54,038.00 in 2015 under the account adjusted depreciation, amortization and net impairment losses. Percentage of Depreciation/Amortization Expense to Cash Flows Year 2015 2014 2013 Results: Computation 54,038 / 65,112 63,724 / 84,716 59,655 / 51,797 Resulting Percentage = 82.99% = 75.22% = 115.17% Annual Report 2015 Page 29 2. Did the company sell any long-lived assets? If so, how much cash did the company receive for selling these assets in each of the last three years? Yes, the company received cash for the following sales: Account / Year Proceeds on sale of marketable securities Proceeds on sale of trademarks Proceeds on disposal of property and equipment and intangibles Total Annual Report 2015 page 27 & 29 Annual Report 2014 Pages 27 & 29 2015 $33,408 2014 $12,500 2013 - $1,025 $4,329 - $101 - - $34,534 $16,829 $0Step by Step Solution
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