acc 620 wk 3
TRANSCRIPT
Total Assets Beg. Yr 6276Total Assets End Yr 6862Total Sales 7719 Asset Turnover RatioNet Income 805
Profit Margin On Sales
Return on Assets1) Asset Turnover and Profit Margin2) Net Income
1.175 Times
10.43%
Return on Assets12.25%12.25%
Cost $1,083,390Expected Life 12 YearsSalvage Value $92,400 Staight Line
Sum of the Years Digits1
Sum-of the years 78 23
rewrote Double-Decling BalanceDep. Rate % 16.67% 16.67% 1
23
Staight Line $82,583
Sum of the Years DigitsYear $152,460Year $139,755Year $127,050
Double-Decling BalanceYear $180,601 Year $150,495 Year $125,407
Cost 9,576,000 Loss on ImparimentAccum. Dep. 1,064,000 Cost $9,576,000 Exp. NCF 7,448,000 Less Accum. Dep. ($1,064,000)FV 5,107,200 Carrying Amount $8,512,000 Useful Life 5 Years FV $5,107,200
a) New Carry Amount $5,107,200 Loss on Impariment $3,404,800 Useful Life 5 Accumulated Deprecation $3,404,800 Dep. Per Year $1,021,440
b)Depreciation Exp. $1,021,440 Accumulated Deprecation $1,021,440 FV (New year) 5,426,400
c)No Entry 0 No Entry 0
$3,404,800
owns 10,710 cost 1989
estimated land w/o timber 459each acre contained 12240
10 miles of road cost 11995sold 5355 trees
1300500 board feet
1) Cost of Timber Sold $162,563 1530 per acre for timber
2) Depreciation Expense $1,190
3) Captialize $160,650
Must Plant 5at a cost of $6 Cost of Seeding $30
Price $205,700 Credit Terms 2/10, n/30 Exp. Life 10 years SV $0 Freight-in $1,936 Exp. Life 8 Years SV $3,630 prep, and Install $9,196 Labor Cost $25,410
a)Straight Line $17,424 Sum of the years $42,592 Double Decling $35,453
St. LinePrice $205,700 Less: Purchase Dis. ($4,114)Freigh-in $1,936 Install $9,196
$212,718 Less: Salvage Value ($3,630)
$209,088
Sum of Year 361 $46,464 $30,976 $15,488 2 $40,656 $27,104
$42,592
Double Decline $35,453
Cost $109,470 Months in first year remaining 7SV $6,150life 7 yearsHours 51660Production 645750Operated 7380 hours
2014Produced 67650Operated 6765 Hours
2015Produced 59040
A) 2014 2015Straight Line $8,610 $14,760
B)Units of Output $10,824 $9,446
$0.16
C)Working Hours $14,760 $13,530
$2
D)Sum of the Year $15,068 $23,678
28
E)Double Decline $18,245 $26,064
2/7
Cost $21,100,000Useful Life 8 yearsSV 0FNCF $13,293,000FV $11,816,000N UL 4 years
A)Carrying Value of Asset
$2,637,500 $21,100,000$5,275,000
$15,825,000
FCF $13,293,000 CV $15,825,000
Loss on Impairment $4,009,000
B)Deprecaition Expense
$2,954,000
C) FV 12449000IF a Loss then Recovery of loss on Impairment $633,000
Loss on Impairment $4,009,000 Accumulated Deprecation- Equipment $4,009,000
Deprecation Expense $2,954,000 Accumulated Deprecation-Equipment $2,954,000
Loss on Imparment $4,009,000 Accumulated Deprecation-Equipment $4,009,000Accumulated Deprecation-Equipment $633,000 Recovery of Loss from Impairment $633,000
Purcahsed 256220 Cash151650 note payable
Cash 50640 Accounts Payable 203450Accounts Recievable 90130 Stockholders' Equity 236520Inventory 100060Land 40940Building (net) 76230Equipment (net) 70820Trademarks 11150
439970 439970
Approximate Current Values Land 79590Inventory 125340Trademarks 16896
A)Cash 50640Accounts Receivable 90130Inventory 125340Land 79590Buildings 76230Equipment 70820Trademarks 16896Goodwill 101674 Accounts Payable 203450 Notes Payable 151650 Cash 256220
B)Trademarks has estimated life of 4 years RV 4472
124240.25
0.5
Amortization Expense 1553 Trademarks 1553
Months Remaining 6
Cost $382,700 $76,540 Materials Consumed $56,180 $56,180 Consulting Fees $101,300 $101,300 Personnel Costs $125,600 $125,600 Indirect Cost $52,030 $52,030 Materials Purchased $35,090
Expected Life 5 years
Straight Line $411,650
Legal Cost $22,560 Legal Defense $8,120
UL 10 years
A)2013 Amortization $2,256
BV $20,304 2014 Amortization $3,158
BV $25,266
B) No Use After 20172014 Amortazation $7,106 Now 2014
BV $21,318 3
C) Ignore B Now 2015FV $14,616 Start 2013FCF $15,786 2
2015 Amortiation $1,827 BV $12,789
Cash 761200 for PurchasePurchased showed on Balance sheetAssets 652000Liabilities 214500Owner's Equity 437500FV: Assets 806200FV: Tradename (included in Assets) 10160FV: Copyright (included in Assets) 36400Tradename: UL 5 yearsCopyright: UL 40 years
A)Montana Matt's Golf Inc.
Intangibles Section of Balance Sheet31-Dec-13
Trade Names 10160Copyrights 35945Good Will 169500Total Intangible Assets 215605
Amortization Expense 455
B)Amortization Expense 910 Copyrights 910
Montana Matt's Golf Inc.Intangibles Section of Balance Sheet
31-Dec-14Trade Names 10160Copyrights 35035Goodwill 169500Total Intangible Assets 214695
C)2015 Old Master Reporting BV 503500
FV 423400IV/GW 89400
ECF FVTrade names 9530 3550Copyrights 43200 23830
Loss on Impairment 86710 Goodwill 80100 Trade Names 6610
Schedule 1Copyright Cost 36400Amortization -455
35945
Schedule 2Purcahse Price 761200FV assets 806200FV Liabilities -214500FV net assets -591700Value assigned to Goodwill 169500
Schedule 1Cost 36400Amortization -1365
35035
Goodwill 80100Trade names 6610
FV:Reporting 423400Net ID Assets (X/GW) -334000
89400
Purchase 8000UL 4 years Months left in the year 6DDB MethodSV 1000First full year
4000 First Year2000 2015
3000