In January 2009, the Status Quo Company was formed. Total assets were $593,000, of which $351,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $35,100 per year, and in 2009 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $43,000 per year each of the last 10 years. Other assets have not changed since 2009. a. Compute return on assets at year-end for 2009, 2011, 2014, 2016 and 2018 Note: Input your answers as a percent rounded to 2 decimal places. Year 2009 2011 2014 2016 2019 Return on Assets % % % % b. To what do you attribute the phenomenon shown in parte Increase in current assets Annual depreciation charges Increase in market share c. Now assume income increased by 10 percent each year. What effect would this have on your answers to perte?

In January 2009, the Status Quo Company was formed. Total assets were $593,000, of which $351,000 consisted of depreciable fixed assets. Status Quo uses straight-line depreciation of $35,100 per year, and in 2009 it estimated its fixed assets to have useful lives of 10 years. Aftertax income has been $43,000 per year each of the last 10 years. Other assets have not changed since 2009. a. Compute return on assets at year-end for 2009, 2011, 2014, 2016 and 2018 Note: Input your answers as a percent rounded to 2 decimal places. Year 2009 2011 2014 2016 2019 Return on Assets % % % % b. To what do you attribute the phenomenon shown in parte Increase in current assets Annual depreciation charges Increase in market share c. Now assume income increased by 10 percent each year. What effect would this have on your answers to perte?

Name: In January 2009, the Status Quo Company was formed. Total assets were
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Description: In January 2009, the Status Quo Company was formed. Total assets were $593,000, of which $351,000 consisted of depreciable fixedassets. Status Quo uses straight-line depreciation of $35,100 per year, and in 2009 it estimated its fixed assets to have

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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