Business, 28.06.2021 06:50 bladencharles8845
Case Study HP Company is suffering declining sales of its medical products. The president, Toshio Nakao, instructs his controller, Satoshi Kasai, to lengthen asset lives to reduce depreciation expense. A processing line of medical equipment, purchased for $4 million in January 2020, was originally estimated to have a useful life of 5 years and a salvage value of $200,000. Depreciation has been recorded for 2 years on that basis. Nakao wants the estimated life changed to 10 years total and the straight-line method continued. Kasai is hesitant to make the change, believing it is unethical to increase net income in this manner. Nakao says, “The life is only an estimate, and I've heard that our competition uses a 12year life on their medical equipment.”
Instructions
(a) Who are the stakeholders in this situation?
(b) Is the proposed change in asset life unethical? Give your explanation.
(c) What is the effect of Nakao's proposed change on income before taxes in the year of change?
Answers: 1
Business, 21.06.2019 19:40
Bear, inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. they have, and desire, a 25% ending inventory of finished goods. each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. the remainder is received in the quarter following sale. cash collections for the third quarter are budgeted at
Answers: 3
Business, 22.06.2019 16:10
Answer the following questions using the banker’s algorithm: a. illustrate that the system is in a safe state by demonstrating an order in which the processes may complete. b. if a request from process p1 arrives for (1, 1, 0, 0), can the request be granted immediately? c. if a request from process p
Answers: 1
Case Study HP Company is suffering declining sales of its medical products. The president, Toshio Na...
Advanced Placement (AP), 27.03.2021 04:10
Mathematics, 27.03.2021 04:10
Arts, 27.03.2021 04:10
Mathematics, 27.03.2021 04:10
Mathematics, 27.03.2021 04:10
Mathematics, 27.03.2021 04:10
Biology, 27.03.2021 04:10
Spanish, 27.03.2021 04:10