Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

From the Internet, choose your own public corp. Using total assets as your cost, assume 15% salvage value, 7yr estimated useful life, and assume the

From the Internet, choose your own public corp. Using total assets as your cost, assume 15% salvage value, 7yr estimated useful life, and assume the asset was purchased on May 1st 2019 (assume cos year-end is Dec 31).

REQUIRED I

1. For 2019 and 2020 only: Calculate Depreciation Exp using Straight Line, Double Declining Balance and Sum of the Years Digits

2. For all 3 of the depreciation methods above, show the Net Book Value at 12/31/20

3. Using Straight Line Depreciation, assume the co sold this asset on June 30th of 2021 for 80% of the original cost:

a. calculate any gain or loss on the sale

b. make the entry to record the sale of the asset

REQUIRED II

For 2 periods calculate the following ratios:

1. Current ratio

2. Inventory turnover ratio or Accounts Receivable turnover ratio

3. Ave number of days in inventory or accounts receivable

4. Profit Margin on Sales ratio

5. Return on Assets

6. Any other ratio you choose

REQUIRED III

In MEMO form: how did your corp do comparing one period to another period (be specific). 1 page MEMO, typed, l2pt font, single spaced (refer to your ratio calculations, as well as overall observations).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Earl K. Stice, James D. Stice

18th edition

538479736, 978-1111534783, 1111534780, 978-0538479738

More Books

Students also viewed these Accounting questions