Solutions_Exercises_Unit_6 - Financial Accounting I Grado...

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Financial Accounting I Grado Administracion de Empresa Exercises Unit 6
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Chapter 6. Fixed tangible assets: Basic issues Exercise 6.1. Interpreting disclosures regarding long-lived assets. General Mills Inc, a Consumer food processing company, for its fiscal years ending May 28, 2006 and May 27, 2007 presents the following partial Balance Sheet. Required: a. General Mills is not in the business of developing computer software. Why then does computer software appear as an asset on its balance sheet? b. Is it likely that General Mills recognizes depreciation on its computer software? Explain c. General Mills computes depreciation on its depreciable assets using the straight-line method and recognized depreciation of $421 million during fiscal 2007. Compute the average total life and the average age of depreciable assets for fiscal 2007. d. Did General Mills likely dispose of any depreciable assets during fiscal 2007? Explain e. Does General Mills appear to be a firm that primarily grows by internal
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This note was uploaded on 02/03/2011 for the course ECON 101 taught by Professor Flora during the Spring '11 term at Universidad Carlos III de Madrid.

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Solutions_Exercises_Unit_6 - Financial Accounting I Grado...

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