4.26 - 4.26 A I think the owner's are expecting a loss from...

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4.26 A I think the owner's are expecting a loss from depreciation since machinery automatically depr By separating the numbers they have more exact totals of where their money is. Depreciation may be a cost of business because without the equipment there is no business. together. Look at this example. For a retail business where a showcase may depreciate the c loss. 4.26 B Depreciation is high since the company has lots of capital. The interest is high because they Depreciation: property, plant, and equipment Interest: notes payable. 4.26 C Operating income $7,150,000 Interest Expense $(1,900,000) Earning before taxes $5,250,000 $1,600,000.00 $5,250,000.00 30.48% 4.26 D Taxes are based on previous tabulations. They could have paid some taces already or een es 4.26 E Cash and short term invest. $1,400,000 Accounts receivable net $4,900,000 Total $6,300,000 This firm has a lot of capital casing current assets to appear low. 4.26 F
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4.26 - 4.26 A I think the owner's are expecting a loss from...

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