Mgmt 200 Spring 2009 Exam Final

Mgmt 200 Spring 2009 Exam Final - First name: _ Last name:...

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First name: ___________ Last name: ______________ PUID: ________________________ Purdue University Krannert School of Management MGMT 200 – Introductory Financial Accounting Spring 2009 Final Exam – May 8, 2009 This exam consists of 4 questions on 12 pages (excluding this cover page and the present value table page) for a total of 100 points. Time allowed: 90 minutes. Answer all questions. To ensure full credit and to maximize partial credit, clearly show all supporting calculations. The exam is closed book. A calculator is permitted. GOOD LUCK . Question 1 (25 points) ________ Question 2 (25 points) ________ Question 3 (25 points) ________ Question 4 (25 points) ________ TOTAL (100 points) ________
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Question 1: Property, Plant, and Equipment (25 points) Part A: Griffin Industries and Heart Chemical are competitors in the heavy metal recycling industry. The following information was extracted from their annual reports for the year ended December 31, 2008. Griffin Industries Heart Chemical Plant and Equipment, at cost $2,813,500 $1,986,600 Accumulated depreciation $1,547,425 $1,572,725 Depreciation expense $140,675 $82,775 Both companies depreciate their plant and equipment using the straight-line method and assume a $0 residual value on all plant and equipment. Required: For both companies compute the average economic life used to depreciate plant and equipment, the average age of their plant and equipment as at December 31, 2008, and the book value of plant and equipment as at December 31, 2008: Griffin Industries Heart Chemical Average economic life used to depreciate plant and equipment: _______________ _______________ Average age of plant and equipment as at December 31, 2008: _______________ _______________ Book value of plant and equipment as at December 31, 2008: _______________ _______________ Supporting calculations: Question 1 continued over . . . Mgmt 200 – Exam 2 – Spring 2009 – page 1
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Question 1 continued Part B: The following information was extracted from the annual report for Juniper Manufacturing for the year ended December 31, 2008. December 31, 2007 December 31, 2008 Plant and Equipment, at cost $754,300 $825,000 Accumulated Depreciation $487,800 $260,900 For the year ended December 31, 2008, Juniper Manufacturing reported depreciation expense on Plant and Equipment of $56,200 and Plant and Equipment that had originally cost $315,700 was sold for $46,900. New plant and equipment was purchased during
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This note was uploaded on 01/29/2010 for the course MGMT 201 taught by Professor Rowe during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt 200 Spring 2009 Exam Final - First name: _ Last name:...

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