The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining- balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2024 year-end financial statements for Company B: Required 1 Required 2 If Company B decided to switch depreciation methods in 2024 from the straight line to the double-declining-balance 2024 journal entry to record depreciation for the year, assuming no journal entry for depreciation in 2024 has yet be Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Income Statement Depreciation expense $ 8,000 Balance Sheet Assets: Plant and equipment, at cost View transaction list Less: Accumulated depreciation Net $ 160,000 (32,000) $ 128,000 You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $160,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero. Journal entry worksheet Record the depreciation expense for 2024. Required: 1. In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2024 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets. 2. If Company B decided to switch depreciation methods in 2024 from the straight line to the double-declining-balance method, prepare the 2024 journal entry to record depreciation for the year, assuming no journal entry for depreciation in 2024 has yet been recorded. Complete this question by entering your answers in the tabs below. Required 1 Required 2 In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2024 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets. Depreciation expense for 2024 Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal Activate now

20 Accounting rules specify that assets on the balance sheet must be reported at current market value, because this is the valuation most useful to potential investors.  Select one:TrueFalse

7

Analyse and comment on the impact of the following events on a companies balance sheet, income statement and cash flow statement. E. g. Company purchases Machinery for $100,000 in cash. Effect. Obvious impact Fixed Asset increased, Balance sheet affected. Company will start recording depreciation expense in Income Statement Cash Outfi ow will reduce balance of cash on balance sheet. Current Ratio likely affected adversely and Working Capital. Analysis. Company may experience increase in Accounts Payable because of such a substantial cash outflow. This will affect Current Liabilities. Or. Company may have to seek short term loan from the bank as a back up in case there is any disturbance in receivables in the future. To counter this substantial cash outflow. Company should have negotiated with a bank a low interest loan to purchase machine over time in instalments. 1)A Manufacturing company ABC: relies on several suppliers for raw materials, often these materials are purchased on 90…

Please do not give solution in image format thanku

Please do not give solution in image format thanku

Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.

at the bottom. Had there been a loss for the In reviewing the income statement of a profitable company, one can see that it begins with at the top and ends with year, the final result would have been a What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? (Select all the answers that apply.) A. The balance sheet balances the firm's assets against its financing, which can be either debt or equity. B. The total value of all of the firm's assets should equal the sum of its short- and long-term debt plus stockholder's equity. C. In order for the balance sheet to balance, stockholder's equity must exclude preferred stock, common stock at par value, paid in capital in excess of par on common stock and retained earnings from previous profitable years in which some of the earnings were held back and not paid out as dividends. D. When the balance sheet does not balance, the difference must be reported as an "off-balance sheet" account for…

07: Assignment- Analysis of Financial Statements Companies have the opportunity to use varying amounts of different sources of financing to acquire their assets, including internal and external sources, and debt (borrowed) and equity funds. Aunt Dottie's Linen Inc. reported no long-term debt in its most recent balance sheet. A company with no debt on its books is referred to as: O a company with no financial leverage, or an unleveraged company a company with financial leverage, or a leveraged company Which of the following is true about the leveraging effect? O Under economic growth conditions, firms with relatively more financial leverage will have higher expected returns. O Under economic growth conditions, firms with relatively low financial leverage will have higher expected returns. Blue Sky Drone Company has a total asset turnover ratio of 4.00, net annual sales of $25,000,000, and operating expenses of $18,750,000 (including depreciation and amortization). On its current balance…

Which of the following is FALSE regarding the financial statements?