An analyst gathers the following information ($ mi
An analyst gathers the following information ($ millions) about three companies operating in the same industry:
Although the companies have different levels of sales and assets, they are all experiencing sales growth at about the same rate and use the same type of equipment in the manufacturing process. All three companies also use the same depreciation method. Which company is least likely to require major capital expenditures in the near future? Company:
A. 1.
B. 2.
C. 3.
参考解答
473***102
2024-11-15 04:27:23
Ans:B.
Average age of assets
= accumulated depreciation/annual depreciation expense
Company 1: 58.9/10.8 = 5.5 years
Company 2: 80.3/27.8 = 2.9 years
Company 3: 128.8/33.6 = 3.8years
Because Company 2 has the lowest average age of assets, it is least likely to need major capital expenditures.
相似问题
Which of the following would most likely be lower
Which of the following would most likely be lower in the early years of an asset’s life using accelerated depreciation met
At the start of the year a company acquired new e
At the start of the year, a company acquired new equipment at a cost of €50,000, estimated to have a 3 year life and a
A company prepares its financial statements in acc
A company prepares its financial statements in accordance with U S GAAP (generally accepted accounting principles) It expecte
A company which prepares its financial statements
A company, which prepares its financial statements in accordance with IFRS uses the revaluation model to value land At the
For which type of long-lived asset is it most appr
For which type of long-lived asset is it most appropriate to test for impairment at least annually:A Property, plant and equipment B Intangible assets with finite live C Intangible assets with indefinite lives
