From the Internet, choose your own public corp. Using total assets as your cost, assume...
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Accounting
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).
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