INTERMEDIATE ACCOUNTING LLW/CONNECT >C<
9th Edition
ISBN: 9781260301168
Author: SPICELAND
Publisher: MCG CUSTOM
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Textbook Question
Chapter 10, Problem 10.10BE
Fixed-asset turnover ratio; solve for unknown
• LO10–5
The balance sheets of Pinewood Resorts reported net fixed assets of $740,000 and $940,000 at the end of 2017 and 2018, respectively. The fixed-asset turnover ratio for 2018 was 3.25. Calculate Pinewood’s net sales for 2018.
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Students have asked these similar questions
17 An analyst compiles the following data for a company:
FY13
FY14
FY15
ROE
19.8%
20.0%
22.0%
Return on total assets
8.1%
8.0%
7.9%
Total asset turnover
2.0
2.0
2.1
Based only on the information above, the most appropriate conclusion is that,
over the period FY13 to FY15, the company's:
A
net profit margin and financial leverage have decreased.
B
net profit margin and financial leverage have increased.
net profit margin has decreased but its financial leverage has increased.
Reported
Horiron Period
S millions
2018
2019
2020
2021
2022 Terminal Period
$14.768 $15454 $16591517,589 $18.644
2711 2880
9.462 10.028 10630 11268 11544
Sales
S15017
NOPAT
3,053
3236
JA10
NCA
12.183
Answer the following requirements assuming a discount rate (WACC) of 735, a terminal period growth rate of 2% common shares outstanding of 328.1 miion, and net nonoperating
obligations (NN0) of 16,204 million
(al Estimate the value of a share of ITWS common stock using the discounted cash flow (DCF model as of December 31, 2018
Instructions:
• Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not roundi and stock price per share.
Round discount factors to 5decimal.places
• Round stock price per share to two decimalplaces
Do not use negative signs with any of your answers
Forecast Horizon
2021
Reported
2020
2022
Terminal Period
(S milions)
2018
2019
increase in NOA
FCFF INOPAT increase in NOA)
Discount factor 1/
Present value of horuon FCFF…
Accounting
Problem 10-10 (Algo) Interest capitalization; weighted-average method [LO10-
7]
On January 1, 2021, the company obtained a $3 million loan with a 12% interest
rate. The building was completed on September 30, 2022. Expenditures on the
project were as follows:
January 1, 2021
$ 1,230,000
March 1, 2021
720,000
June 30, 2021
380,000
October 1, 2021
670,000
January 31, 2022
990,000
April 30, 2022
1,305,000
August 31, 2022
2,340,000
On January 1, 2021, the company obtained a $3 million construction loan with a
12% interest rate. Assume the $3 million loan is not specifically tied to
construction of the building. The loan was outstanding all of 2021 and 2022.
The company's other interest-bearing debt included two long-term notes of
$5,600,000 and $7,600,000 with interest rates of 8% and 10%, respectively.
Both notes were outstanding during all of 2021 and 2022. Interest is paid
annually on all debt. The company's fiscal year-end is December 31.
Required:
1. Calculate the amount of…
Chapter 10 Solutions
INTERMEDIATE ACCOUNTING LLW/CONNECT >C<
Ch. 10 - Prob. 10.1QCh. 10 - Prob. 10.2QCh. 10 - Prob. 10.3QCh. 10 - Prob. 10.4QCh. 10 - Prob. 10.5QCh. 10 - Prob. 10.6QCh. 10 - When an asset is acquired and a note payable is...Ch. 10 - Explain how assets acquired in exchange for equity...Ch. 10 - Prob. 10.9QCh. 10 - What account is credited when a company receives...
Ch. 10 - Prob. 10.11QCh. 10 - Identify the two exceptions to valuing property,...Ch. 10 - In what situations is interest capitalized?Ch. 10 - Define average accumulated expenditures and...Ch. 10 - Explain the difference between the specific...Ch. 10 - Prob. 10.16QCh. 10 - Prob. 10.17QCh. 10 - Explain the accounting treatment of costs incurred...Ch. 10 - Explain the difference in the accounting treatment...Ch. 10 - Prob. 10.20QCh. 10 - Prob. 10.21QCh. 10 - Prob. 10.22QCh. 10 - Prob. 10.23QCh. 10 - Acquisition cost; machine LO101 Beavert on Lumber...Ch. 10 - Prob. 10.2BECh. 10 - Prob. 10.3BECh. 10 - Cost of a natural resource; asset retirement...Ch. 10 - Asset retirement obligation LO101 Refer to the...Ch. 10 - Prob. 10.6BECh. 10 - Acquisition cost; noninterest-bearing note LO103...Ch. 10 - Prob. 10.8BECh. 10 - Fixed-asset turnover ratio LO105 Huebert...Ch. 10 - Fixed-asset turnover ratio; solve for unknown ...Ch. 10 - Prob. 10.11BECh. 10 - Nonmonetary exchange LO106 Refer to the situation...Ch. 10 - Nonmonetary exchange LO106 Refer to the situation...Ch. 10 - Prob. 10.14BECh. 10 - Prob. 10.15BECh. 10 - Research and development LO108 Maxtor Technology...Ch. 10 - Prob. 10.17BECh. 10 - Research and development; various types LO108...Ch. 10 - Prob. 10.19BECh. 10 - Acquisition costs; land and building LO101 On...Ch. 10 - Acquisition cost; equipment LO101 Oaktree Company...Ch. 10 - Prob. 10.3ECh. 10 - Cost of a natural resource; asset retirement...Ch. 10 - Intangibles LO101 In 2018, Bratten Fitness...Ch. 10 - Goodwill LO101 On March 31, 2018, Wolfson...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Acquisition costs; noninterest-bearing note ...Ch. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Nonmonetary exchange LO106 [This is a variation...Ch. 10 - Prob. 10.16ECh. 10 - Nonmonetary exchange LO106 [This is a variation...Ch. 10 - Prob. 10.18ECh. 10 - Prob. 10.19ECh. 10 - Prob. 10.20ECh. 10 - FASB codification research LO101, LO106, LO107,...Ch. 10 - Prob. 10.22ECh. 10 - Interest capitalization LO107 On January 1, 2018,...Ch. 10 - Interest capitalization LO107 On January 1, 2018,...Ch. 10 - Interest capitalization; multiple periods LO107...Ch. 10 - Research and development LO108 In 2018, Space...Ch. 10 - Prob. 10.27ECh. 10 - IFRS; research and development LO108, LO109...Ch. 10 - IFRS; research and development LO109 IFRS NXS...Ch. 10 - Prob. 10.30ECh. 10 - Software development costs LO108 Early in 2018,...Ch. 10 - Prob. 10.32ECh. 10 - Intangibles; start-up costs LO101, LO108 Freitas...Ch. 10 - Prob. 10.34ECh. 10 - Prob. 10.1PCh. 10 - Prob. 10.2PCh. 10 - Prob. 10.3PCh. 10 - Prob. 10.4PCh. 10 - Acquisition costs; journal entries LO101, LO103,...Ch. 10 - Prob. 10.6PCh. 10 - Nonmonetary exchange LO106 On September 3, 2018,...Ch. 10 - Prob. 10.8PCh. 10 - Interest capitalization; specific interest method ...Ch. 10 - Prob. 10.10PCh. 10 - Research and development LO108 In 2018,...Ch. 10 - Prob. 10.12PCh. 10 - Judgment Case 101 Acquisition costs LO101, LO103,...Ch. 10 - Research Case 102 FASB codification; locate and...Ch. 10 - Judgment Case 103 Self-constructed assets LO107...Ch. 10 - Judgment Case 104 Interest capitalization LO107...Ch. 10 - Prob. 10.6BYPCh. 10 - Prob. 10.7BYPCh. 10 - Judgment Case 108 Research and development LO108...Ch. 10 - Prob. 10.9BYPCh. 10 - Prob. 10.11BYPCh. 10 - Ethics Case 1012 Research and development LO108...Ch. 10 - Prob. 10.13BYPCh. 10 - Prob. 10.14BYPCh. 10 - Prob. 10.15BYPCh. 10 - Prob. 10.16BYPCh. 10 - Continuing Cases Target Case LO101, LO105 Target...
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