Define the following concepts
- Assets
- Be high
- Be low
ABC company buys a piece of equipment for SR10,500 the equipment has an expected life of 10 years and salvage value of SR500.
A) what is the straight depreciation formula?
B) Calculate the straight-line depreciation for company.
XYZ has the following inventory Month Units Purchased Cost per Unit
Jan 35 10SAR 350SAR
Feb 30 15 450
March 25 20 500
Total 150 - 1,300
In April, the company sold 40 units for total price of 1,000SAR.
Calculate the cost of goods sold and the gross profit for the company using
- 1-FIFO method
- 2-LIFO method
What are the four standards for comparisons in financial analysis?
East, Inc. reports 125,000 net income for the year ended December 31, 2019. Accounts receivable increased by 7,500 duraing the year and accounts payable increased by 10,000. During 2019, East reported 12,500 of depreciation expense. Calculate East's operating Cash flow for 2019 using indirect method
Sample Solution