Question

Bauer Performance Sports Ltd. is a leading developer and manufacturer of ice hockey, roller hockey, and lacrosse equipment as well as related apparel. The following information was reported in Note 14 to the company’s financial statements for fiscal year 2012 (in thousands of dollars):
Required:
1. Assuming that Bauer did not sell any property, plant, and equipment in 2012, what was the amount of depreciation expense recorded in 2012?
2. Assume that Bauer failed to record depreciation in 2012. Indicate the effect of the error (i.e., overstated or understated) on the following ratios:
(a) Earnings per share
(b) Fixed asset turnover ratio
(c) Current ratio
(d) Return on equity.
Computations are not required.


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  • CreatedAugust 04, 2015
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