Mgmt_200_Spring_2008_solutions_3-7-08(3,7)

Mgmt_200_Spring_2008_solutions_3-7-08(3,7) - Building (+A).

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Management 200 – Introductory Financial Accounting– Spring 2008 Krannert School of Management - Purdue University Solutions to class assignment for March 7, 2008 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 E8–3 1
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Unformatted text preview: Building (+A). .................................................................................. 93,200 Land (+A) . ...................................................................................... 108,000 Cash (-A). ............................................................................... 201,200 Building Land Cash paid $71,200 $106,800 + renovations to prepare for use 21,200 + share of transfer costs 800 1,200 $93,200 $108,000 2. Straight-line depreciation computation: ($93,200 cost - $14,000 residual value) x 1/12 years = $6,600 depreciation expense per year Note: Land is not depreciated. 3. Computation of the book value of the property at the end of year 2: Building $ 93,200 Less: Accumulated depreciation ($6,600 x 2 years) (13,200) $ 80,000 Land 108,000 $188,000...
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This note was uploaded on 11/22/2009 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt_200_Spring_2008_solutions_3-7-08(3,7) - Building (+A).

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