Castaway Co.
Balance Sheet
Assets:
20X1
20X2
Cash
100,000
100,000
Accounts Receivable
48,000
30,000
Inventory
65,000...
Castaway Co.
Balance Sheet
Assets:
20X1
20X2
Cash
100,000
100,000
Accounts Receivable
48,000
30,000
Inventory
65,000
50,000
Prepaid Rent
6,000
12,000
Equipment
125,000
300,000
Accumulated Dep
25,000
35,000
BV of Equipment
100,000
265,000
Land
50,000
20,000
Total Assets
$ 369,000
$ 477,000
Castaway Co.
Income Statement
for 20X2
Revenues
$ 200,000
COGS
75,000
Gross Profit
125,000
Insurance Expense
5,000
Rent Expense
6,000
Supplies Expense
5,000
Depreciation Expense
10,000
Interest Expense
8,000
Net Income
$ 91,000
What is cash paid for...
Mike purchased a piece of manufacturing equipment on January 1,
20X1 for $250,000. The equipment has...
Mike purchased a piece of manufacturing equipment on January 1,
20X1 for $250,000. The equipment has been depreciated using the
straight-line method with a 10-year useful life and no residual
value. At the beginning of 20X6, Mike estimates that the equipment
has a remaining useful life of 5 years, that net cash inflow from
the equipment will be $18,000 per year, and that the fair value of
the equipment is $110,000.
Determine whether the equipment is impaired. If so, what...
Bruins Co. acquired a machine on June 30, 20x1 and gave the
seller a $20,000 cash...
Bruins Co. acquired a machine on June 30, 20x1 and gave the
seller a $20,000 cash down payment and a two year, $100,000,
non-interest bearing note calling for four payments of P&I in
the amount of $25,000 each. The payments are to be made
semi-annually with the first payment beginning on December 31,
20x1. The prevailing rate of interest was 12% APR.
3%
6%
12%
Present Value of Ordinary Annuity of $1 for 4 periods
3.72
3.47
3.04
Present Value...
Mike purchased a piece of manufacturing equipment on January 1,
20X1 for $250,000. The equipment has...
Mike purchased a piece of manufacturing equipment on January 1,
20X1 for $250,000. The equipment has been depreciated using the
straight-line method with a 10-year useful life and no residual
value. At the beginning of 20X6, Mike estimates that the equipment
has a remaining useful life of 5 years, that net cash inflow from
the equipment will be $18,000 per year, and that
the fair value of the equipment is $110,000.
Determine whether the equipment is impaired. If so, what...
Below is a listing of the account balances at the beginning and
end of 20X1 for...
Below is a listing of the account balances at the beginning and
end of 20X1 for Northern Inc.
1/1/X1
12/31/X1
Cash
$ 15,000
$ 8,000
Accounts Receivable
30,000
37,000
Inventory
120,000
130,000
Supplies
4,000
7,000
Equipment
300,000
400,000
Accumulated Depreciation
80,000
100,000
Accounts Payable*
8,000
12,000
Salaries Payable
10,000
15,000
Income Taxes Payable
3,000
1,000
Deferred Revenue
7,000
3,000
Common Stock
200,000
200,000
Retained Earnings
161,000
161,000
Sales Revenue
0
340,000
Sales Discounts
0
15,000
Cost of Goods Sold
0...
t the beginning of 2017, your company buys a $30,000 piece of
equipment that it expects...
t the beginning of 2017, your company buys a $30,000 piece of
equipment that it expects to use for 4 years. The equipment has an
estimated residual value of 6,000. The company expects to produce a
total of 200,000 units. Actual production is as follows: 42,000
units in 2017, 48,000 units in 2018, 49,000 units in 2019, and
61,000 units in 2020.
Required:
Determine the depreciable cost.
Calculate the depreciation expense per year under the
straight-line method.
Use the straight-line...
Marsha Inc. has the following budgeted data for the coming
year:
Cash balance, beginning
$ 15,000...
Marsha Inc. has the following budgeted data for the coming
year:
Cash balance, beginning
$ 15,000
Collections from customers
145,000
Direct materials purchases
25,000
Expenses:
Operating expenses
50,000
Payroll
75,000
Income taxes
6,000
Other:
Machinery purchases
30,000
Operating expenses include $20,000 depreciation for buildings
and equipment. All purchases of materials are paid for in the
period of purchase. The company requires a minimum cash balance of
$25,000.
Compute the amount the company needs to finance or the excess
cash available...
On January 1, 2016, Walid Company purchases equipment for
$12,000 with 4 years estimated useful life...
On January 1, 2016, Walid Company purchases equipment for
$12,000 with 4 years estimated useful life and no salvage value. On
December 31, 2019, Walid Company retires the equipment. The
straight-line method of depreciation is applied and financial
statements are prepared yearly. The retirement entry is: *
Mohr Company purchases a machine at the beginning of the year at
a cost of $39,000....
Mohr Company purchases a machine at the beginning of the year at
a cost of $39,000. The machine is depreciated using the
straight-line method. The machine’s useful life is estimated to be
5 years with a $5,000 salvage value. The book value of the machine
at the end of year 2 is
Mohr Company purchases a machine at the beginning of the year at
a cost of $27,000....
Mohr Company purchases a machine at the beginning of the year at
a cost of $27,000. The machine is depreciated using the
straight-line method. The machine’s useful life is estimated to be
8 years with a $5,000 salvage value. The book value of the machine
at the end of year 2 is: