For Three Months For Three Months Ended December 31, 2015 Ended March 31, 2016 Office Equipment 8,000 8,000 Accumulated depreciation Office Equipment 400 400 Computer Equipment 20,000 20,000 Accumulated depreciation Computer Equipment 1,250 2,500 Total revenue 31,284 44,000 Total Assets 83,460 120,268 Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2016 Compute amounts for the year ended December 31, 2016, for Depreciation Expense Office Equipment and for Depreciation Expense Computer Equipment assume use of the straight line method) Given the assumption in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2016 Compute the three month total asset turnover for Business Solutions as of March 31, 2016 Use total revenue for the numerator and average the December 31, 2015, total assets and the March 31, 2016, total assets for the denominator Interpret its total asset turnover if competitors average 2 5 for annual periods (Round turnover to two decimals) For Three Months Ended December 31, 2015 For Three Months Ended March 31, 2016 Office Equipment 8,000 8,000 Accumulated depreciation Office Equipment 400 400 Computer Equipment 20,000 20,000 Accumulated depreciation Computer Equipment 1,250 2,500 Total revenue 31,284 44,000 Total Assets 83,460 120,268 Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2016 Compute amounts for the year ended December 31, 2016, for Depreciation Expense Office Equipment and for Depreciation Expense Computer Equipment assume use of the straight line method) Given the assumption in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2016 Compute the three month total asset turnover for Business Solutions as of March 31, 2016 Use total revenue for the numerator and average the December 31, 2015, total assets and the March 31, 2016, total assets for the denominator Interpret its total asset turnover if competitors average 2 5 for annual periods (Round turnover to two decimals)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 22, 2024

For Three Months For Three Months

Ended December 31, 2015 Ended March 31, 2016

Office Equipment 8,000 8,000

Accumulated depreciation

Office Equipment 400 400

Computer Equipment 20,000 20,000

Accumulated depreciation

Computer Equipment 1,250 2,500

Total revenue 31,284 44,000

Total Assets 83,460 120,268

Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2016. Compute amounts for the year ended December 31, 2016, for Depreciation Expense - Office Equipment and for Depreciation Expense - Computer Equipment assume use of the straight-line method).
Given the assumption in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2016.
Compute the three-month total asset turnover for Business Solutions as of March 31, 2016. Use total revenue for the numerator and average the December 31, 2015, total assets and the March 31, 2016, total assets for the denominator. Interpret its total asset turnover if competitors average 2.5 for annual periods. (Round turnover to two decimals).

For Three Months

Ended December 31, 2015

For Three Months

Ended March 31, 2016

Office Equipment

8,000

Accumulated depreciation

Office Equipment

400

Computer Equipment

20,000

Accumulated depreciation

Computer Equipment

1,250

2,500

Total revenue

31,284

44,000

Total Assets

83,460

120,268

Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2016. Compute amounts for the year ended December 31, 2016, for Depreciation Expense - Office Equipment and for Depreciation Expense - Computer Equipment assume use of the straight-line method).
Given the assumption in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2016.
Compute the three-month total asset turnover for Business Solutions as of March 31, 2016. Use total revenue for the numerator and average the December 31, 2015, total assets and the March 31, 2016, total assets for the denominator. Interpret its total asset turnover if competitors average 2.5 for annual periods. (Round turnover to two decimals).