Long-term fixed assets: The assets that are useful in generating income and cash flows over many years are long-term assets. Analyzing long-term fixed assets requires applying techniques such as assessment of the percent of long-term fixed assets to total assets, and change in fixed assets during the year. The comparison between categories and useful lives disclosed by each company.
Long-term fixed assets: The assets that are useful in generating income and cash flows over many years are long-term assets. Analyzing long-term fixed assets requires applying techniques such as assessment of the percent of long-term fixed assets to total assets, and change in fixed assets during the year. The comparison between categories and useful lives disclosed by each company.
Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).
Chapter 11, Problem 1FSC
a.
To determine
Concept Introduction:
Long-term fixed assets: The assets that are useful in generating income and cash flows over many years are long-term assets. Analyzing long-term fixed assets requires applying techniques such as assessment of the percent of long-term fixed assets to total assets, and change in fixed assets during the year.
The comparison between categories and useful lives disclosed by each company.
b.
To determine
Concept Introduction:
Long term fixed assets: The assets that are useful in generating income and cash flows over many years are long-term assets. Analyzing long-term fixed assets requires applying techniques such as assessment of the percent of long-term fixed assets to total assets, and change in fixed assets during the year.
The percentage of long-lived tangible to total assets for both the companies in the year 2018 and 2019.
c.
To determine
Concept Introduction:
Long term fixed assets: The assets that are useful in generating income and cash flows over many years are long-term assets. Analyzing long-term fixed assets requires applying techniques such as assessment of the percent of long-term fixed assets to total assets, and change in fixed assets during the year.
The computation of average age and average remaining life for 2019 and 2018.
d.
To determine
Concept Introduction:
Long term fixed assets: The assets that are useful in generating income and cash flows over many years are long-term assets. Analyzing long-term fixed assets requires applying techniques such as assessment of the percent of long-term fixed assets to total assets, and change in fixed assets during the year.
The computation of fixed asset turnover for the year 2019