### Determine the effects of executives proposed changes

Assignment Help Financial Accounting
##### Reference no: EM131216104

Ralph Industries is experiencing lower than expected sales. The company’s executives agreed that in order to make up some of the lost revenue’s impact on the bottom line, expenses must be lower. One of the expenses to reduce was equipment that was purchased for \$4,400,000 two years ago and which was estimated to have a useful life of eight years and a salvage value of \$400,000. The company uses straight line deprecation, therefore, the company has recorded accumulated depreciation of \$1,000,000 to date.

The executives want the estimated useful life changed from eight to 12 years so that depreciation expense will be reduced. The argument is that the useful life was just an estimate and by changing it the company can be aligned with the industry since some competitors in the industry also use 12 years’ useful life.

Identify the stakeholders in the case.

Determine whether the proposed change in assets’ useful life is unethical or good business practice.

Determine the effects of executives’ proposed changes on the income before taxes for the year of proposed change.

State what you would do if you were in charge of making the change. (this part may need to have some specific accounting instructions)

#### Questions Cloud

 Examine the spectra of the modulated signals : Develop the demodulation circuit corresponding to Illustration 154. Rectification should be shown by the „absolute value" process (module "arithmetics"), the RC circuit by lowpass filtering. See also Illustration 155 How much will whole company profitability increase-decrease : Stanco Inc. has two divisions, Electronics and Clocks. The Electronics Division (which is operating at capacity) , makes a specialized circuit borad called SA5 which it sells to its regular customers for \$14 each. Suppose the total demand for the new.. Draw a graph of composite profile and find junction depth : Draw a graph of the composite profile and find the junction depth(s) if the phosphorus background concentration is 10 1 6 /cm3. What is the calculated twa : What is the calculated TWA? What would you tell plant management in terms of exposure to acetone and compliance with the PEL? Determine the effects of executives proposed changes : Ralph Industries is experiencing lower than expected sales. The company’s executives agreed that in order to make up some of the lost revenue’s impact on the bottom line, expenses must be lower. Determine whether the proposed change in assets’ useful.. Develop an am generator by means of the module : Develop an AM generator by means of the module "formula interpreter" which implements the AM formula given on page 236 and with which the degree of modulation m, fLF and fcarrier can be set. Select ÛLF = 1 V How is the input parameter of measurement system done : How is the input parameter of measurement system done? - Show the input.  - Show the output.  - Show the other parameters. Identify new questions you have now that you have discovered : Identify new questions you have now that you have discovered more about the issue. Explain how you might apply the critical analysis and research skills you have been practicing this week to your student and professional roles. Find greatest load-carrying capacity : A 1.2m long book shelf is to be supported by two wall brackets. How far apart should the brackets be to give the greatest load-carrying capacity?

### Write a Review

#### Financial statement analysis and preparation

Financial Statement Analysis and Preparation

#### Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

#### Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

#### Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

#### Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

#### Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

#### Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

#### Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

#### Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

#### Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

#### Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

#### Computation of free cash flow

Computation of Free Cash Flow