Business Administration 2257 Study Guide - Midterm Guide: Retained Earnings, Accrued Interest, Finance Lease

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If tax is same as last year: tax amount/nibt = % 2) fifo (e/b valued at most recent purchase price) E/b = (25 x ) = : average cost (unit cost 3 decimals) (cid:2179)(cid:2157)(cid:2159)=(cid:2159)(cid:2171)(cid:2163)(cid:2157)(cid:2162)(cid:2175) (cid:2177)(cid:2157)(cid:2162)(cid:2175) (cid:2206) (cid:2161)|(cid:2158) (cid:4666)(cid:2177)(cid:2196)(cid:2202)(cid:2201)(cid:4667) 1) take the value of one lease payment. 3) use the implicit rate (i) and number of dates - 1 as (n) in table 2 to find pv factor. 4) multiply the pv factor by the value of 1 pmt. 5) add the value of one payment to the amount found in step 4) to find pv future payments. Table 2: annuity/ interest payments n = # of periods remaining in the lease i = interest rate/implicit rate. E/b wip = prm + pdl + pfoh. Use proxies such as: machine hrs. , dl $, *look for spread evenly throughout process* (cid:2162)(cid:2171)(cid:2164)=(cid:2172)(cid:2200)(cid:2202) (cid:2172)(cid:2200)(cid:2197)(cid:2206)(cid:2207) (cid:2176)(cid:2197)(cid:2202) (cid:2172)(cid:2200)(cid:2197)(cid:2206)(cid:2207) (cid:2176)(cid:2197)(cid:2202) (cid:2162)(cid:2171)(cid:2164)