### Determination of depreciation expense

Assignment Help Finance Basics
##### Reference no: EM1355393

1.________ is an expense that is a legal obligation of the firm.

1. Labor expense
2. Interest expense
3. Salaries expense
4. Rent expense

2. Under MACRS, an asset which originally cost \$10,000 is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 3?

1. \$1,200
2. \$1,900
3. \$2,100
4. \$1,500

3.Which of the following is a source of cash flows?

1. Depreciation.
2. Taxes.
3. Cost of goods sold.
4. Interest expense.

4.A firm's operating cash flow is defined as

1. EBIT + depreciation.
2. gross profit minus operating expenses.
3. gross profit minus depreciation.
4. EBIT - taxes + depreciation.

5. \$100 is received at the beginning of year 1, \$200 is received at the beginning of year 2, and \$300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.

1. \$1,245
2. \$ 727
3. \$1,536
4. \$ 672

#### Questions Cloud

 Explain the concept of supply chain management : Explain the concept of supply chain management. Although R/Way offers services rather than products, could that concept apply to the design of R/Way's new system? If so, how? Assume that net horizontal force is due to rolling friction : Assume that the net horizontal force is due to rolling friction only and take free-fall acceleration to be = 9.80 .What is the coefficient of rolling friction for the tire under low pressure. Explain what can you do if you just cannot : Explain What can you do if you just cannot use a probability sampling technique and Why is this important Illustrate how many would you expect to be sold under each : Illustrate how many would you expect to be sold under each pair of price and income demand elasticity estimates. Determination of depreciation expense : Under MACRS, an asset which originally expenses \$10,000 is being depreciated using a five year normal recovery period. Determine the depreciation expense in year 3? Organizational renewal and transformation : Organizational renewal and transformation- A better definition for organizational renewal and organizational transformation. Cash versus accrual method of accounting : How much revenue will Drysdale recognize under the cash method and under the accrual basis? Describe how Drysdale should apply the matching principle to recognize expenses. Prepare an income statement according to the accrual method. Ignore income ta.. What is the fastest hunter swing his rock without breaking : An old hunting weapon was a rock on the end of a string. The hunter would swing the rock in horzontal circles and then throw it. If the rock had a mass of 2 kg and the 2 m long string breaks when the tension is 60N. Organizational functions for your venture : Organizational functions for your venture - Explain how you would manage the following organizational functions for your venture in the selected country

### Write a Review

#### Determine the appropriate answer to stock

The fund you represent is a significant shareholder in Iron Man Industries which just paid a dividend of \$5.25 per share is currently expected to increase in perpetuity at 5 percent every year.

#### Calculate terminal or horizon value of operations

Sony Company has never paid a dividend. The free cash flow is projected to be \$40,000 & \$50,000 for the next two years, & after 2nd year it is expected to grow at a constant rate of 6%.

#### Foreign corporate tax rate

Assume England raised its corporate tax rate by 1 percentage point from 40% to 41%. How would this raise affect the economics of U.S.-U.K. foreign expansion project?

#### Dupont formula for southwest airlines

Briefly discuss the impact of the changes in asset turnover and financial leverage on ROE over the the three years.

#### Purpose of statement of cash flows

Prepare a response in which you answer: What is the purpose of the statement of cash flows? What information does it provide?

#### Returns and the bell curve

An investment has an expected return of 8% per year with a standard deviation of 4%. Assuming that the returns on this investment are at least roughly normally distributed, how frequently do you expect to lose money?

#### Describe forecasting of net income using ebit-eps analysis

Describe Forecasting of net income using EBIT-EPS analysis and what will be the forecast for Robert's year-end net income

#### Semi-annual interest payments

The semi-annual interest payments that corporate bonds in the U.S. typically pay are conventionally referred to as

#### Calculate the 6 monthly discount factors

Calculate the 6 monthly discount factors D(t) and the semi-annual zero coupon rates z(t), where t = 0.5, 1, 1.5, ., 9.5, 10. (2) Using the discount factors derived in (1), calculate the price of a 4½ year semi-annual coupon bond with an annual coupon..

#### Determine the term bond valuation

Determine the term Bond valuation and what would this imply about the terms of the issue

#### A preparation of a repayment schedule

A Preparation of a repayment schedule and Prepare an instalment loan repayment schedule for the first

#### Evaluate a company''s average tax rate

To evaluate a company's average tax rate an analyst would - Typical U.S. GAAP disclosures for deferred income taxes include all of the except