Ch 08 - Orman Company Attached Files: Ch 08- Orman Company.xlsx (18.851 KB) Here is the information for Orman Company. I have also attached this information in an Excel worksheet Orman Company is a large international canning company. Orman uses straight-line depreciation for financial reporting purposes and accelerated depreciation for tax reporting. The company's tax rate is 35%. Selected financial information about Orman appears below. Orman Company Selected Financial data December 31, 2010 2009 2008 5178,454 5162,3695155,388 515,685 424545 410.256 Property, Plant & Equipment (net) Total Assets Deferred Tax Liability relating to Temporary Depreciation Differences Common Shareholders' Equity 25,138 18.245 19.689 302.754 298.564 289.455 3086.258 693.857 25 Sales Cost of Goods Sold Depreciation Expense Interest Expense Net income 88,965 588,920 390 75,689 91.625 124.561 Required: Compute the amount of depreciation expense that Orman record for income purposes for year 2010 and 2009. The amount reported as the deferred tax liability relating to temporary depreciation differences represents the cumulative income tax deyed as of each balance sheet date because Ormanuses accelerated depreciation for tax purposes and straight line depreciation for financial statement reporting Compute the fixed asset turnover rate for years 2010 and 2009 using the amounts reported for financial statement purposes Compute the fixed asset turnover ratio for years 2010 and 2009 ung the amounts reported for tax purposes