1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Svetach [21]
2 years ago
5

Assume that Solo Company commenced operations on January 1, 2006, and it was granted permission to use the same depreciation cal

culations for shareholder reporting and income tax purposes. The company planned to depreciate its fixed assets over 15 years, but in December 2006 management realized that the assets would last for only 10 years. Solo's accountants plan to report the 2006 financial statements based on this new information. How would the new depreciation assumption affect the company's financial statements
Business
1 answer:
Musya8 [376]2 years ago
6 0

Answer: c. The firm's cash position in 2006 and 2007 would increase.

Explanation:

Depreciation expense is heavily dependent on the useful life of the asset. The longer the useful life, the smaller the depreciation expense because the equipment is being depreciated over a longer period.

If the useful life is reduced from 15 to 10 years therefore, the depreciation expense would increase.

The Cash position of a company is calculated by adding back the depreciation to the Net income after taxes are paid because depreciation is not a cash expense.

If the depreciation is now larger (which it is) and is added back to the Net income, the cash position will therefore increase.

You might be interested in
Joshua needed money for some unexpected expenses, so he borrowed $5,355.26 from a friend and agreed to repay the loan in seven e
konstantin123 [22]

Answer:

10%

25.14 years

Explanation:

A financial calculator can be used to solve these problems

PMT = $-1,100

PV = $5,355.26

FV = 0

N = 7

Compute I = 10%

PMT = $-25,000

FV =  $1,387,311

I = 6%

PV = 0

Compute N = 25.14 years

8 0
3 years ago
Which of the following forms of communication has the most impact during your interview? a. Nonverbal b. Verbal c. Voice quality
Alex
Being verbal during an interview is a important thing <span />
8 0
3 years ago
Read 2 more answers
Lachlan Stuart is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very comp
Sveta_85 [38]

Answer: c) intrapreneur

Explanation:

Intrapreneur is the person who who belongs to a large firm and acts in the manner of entrepreneur to make innovative development ideas for any project .They help in promotion of production and innovation along with taking measures for functioning in organization.

According to the question,Lachlan Stuart is an intrapreneur who is an employee in a company .He is responsible for methods and ideas development to be ahead of other competing firms.

Other options are incorrect because in-sourced entrepreneur, corporate entrepreneur and multipreneur are not the way in which a person acts like an entrepreneur even through he/she is working for a firm.Thus, the correct option is option(c).

8 0
3 years ago
Based on the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc
Sonja [21]

The expected return for stock A and B is 8.55% and 15.11% respectively.

<h3>What is the Expected return?</h3>

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

Expected return for stock A:

= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)

= 0.0855

= 8.55%

Expected return for stock B:

= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)

= 0.1511

= 15.11%

Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.

Read more about Expected return

<em>brainly.com/question/25821437</em>

#SPJ1

3 0
1 year ago
Formerly owned by ebay, a popular free online payment service that allows you to send money, and accept payments without reveali
julia-pushkina [17]

A popular free online payment service that allows you to send money, and accepts payments without revealing your personal financial information is Pay- pal.

<h3>What is financial information?</h3>

Personal information is refer to information related to banks that shows the financial position of an individual. This information includes the number or pin of debit cards or credit cards, statements of banks, and the transaction made.

Owned subsidiary of eBay pay-pal is referred to as an online service payment that is owned by eBay providing users with security by allowing them for making payments without revealing their personal financial information.

Learn more about online payment services, here:

brainly.com/question/1638022

#SPJ4

4 0
1 year ago
Other questions:
  • C. calculate the dollar value of us bonds held by the chinese government. explain how you determined your answer. identify the r
    10·2 answers
  • In Sammy's fast food restaurant, she produces sandwiches, soups, and other items for customers in her town. Which of the followi
    8·1 answer
  • The demand for one of X Company’s products has declined in recent years. The product is manufactured using designated equipment
    14·1 answer
  • When creating a chart or graph, which should be completed first?
    15·1 answer
  • All professional athletes earn a lot of money. wes plays professional football so he makes a lot of money. what type of reasonin
    10·2 answers
  • A machine can be purchased for $288,000 and used for five years, yielding the following net incomes. In projecting net incomes,
    13·1 answer
  • The Web 2.0 revolution has changed the way businesses communicate with consumers and within their own organizations. Podcasts, w
    13·1 answer
  • The Place has been consistently ranked as the most popular fast food restaurant in the city thanks to the excellent culinary ski
    7·1 answer
  • Assume that the reserve requirement is 20 percent. If the Federal Reserve buys $5,000 worth of bonds, the largest possible incre
    13·1 answer
  • According to the traditional approach to capital​ structure, the value of a firm will be maximized when​ ________. A. the financ
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!