Homework Manager Assignment Solutions
E8–1.
Hasbro, Inc.
Excerpts from Balance Sheet
(in millions)
ASSETS
Current Assets
Cash and cash equivalents
$
521
Accounts receivable (net of allowance for doubtful accounts, $39)
607
Inventories
169
Prepaid expenses and other current assets
212
Total current assets
1,509
Property, Plant, and Equipment
Tools, dies and molds
30
Machinery and equipment
304
Buildings and improvements
206
Land and improvements
18
Property, plant, and equipment (at cost)
558
Less:
Accumulated depreciation
358
Total property, plant, and equipment (net)
200
Other Assets
Goodwill
464
Other intangibles (net of accumulated amortization, $435)
711
Other noncurrent assets
280
Total other assets
1,455
Total Assets
$3,164
E8–8.
Req. 1
a.
Straight-line:
Year
Computation
Depreciation
Expense
Accumulated
Depreciation
Net
Book Value
At acquisition
$125,000
1
($125,000 - $15,000) x 1/5
$22,000
$22,000
103,000
2
($125,000 - $15,000) x 1/5
22,000
44,000
81,000
3
($125,000 - $15,000) x 1/5
22,000
66,000
59,000
4
($125,000 - $15,000) x 1/5
22,000
88,000
37,000
5
($125,000 - $15,000) x 1/5
22,000
110,000
15,000
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b.
Units-of-production: ($125,000 – $15,000)
÷
250,000 = $0.44 per unit of output
Year
Computation
Depreciation
Expense
Accumulated

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- Spring '07
- LITTLE,J.
- Depreciation, ........., Hasbro, Manager Assignment Solutions
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