Question 1 The investment center of BD Company has just report the following financial information for their division Operating profit The following adjustment must be considered: $ 000 5000 Non-current assets and current assets at the start of the year amounting $ 18 million and 6 million respectively. Whereas long term liabilities and current liabilities at the start of the period assume to be 8 million and 4 million respectively At the end of year the equity and long term debt amounting as $ 16 million and 9 million respectively Research and development cost amounting $ 4.5 million however the R&D should be divided in to 3 years whereas the whole amount has been charged totally for current year Non-cash expenses amounting $ 900,000 has been charged . Amortization of good will took place amounting $ 600,000