The information in the following table comes from the 2020 financial statements of QuickBrush Company and SmileWhite
Question:
The information in the following table comes from the 2020 financial statements of QuickBrush Company and SmileWhite Corporation:
Determine which company has the higher quality of earnings by discussing each of the three notes.
Transcribed Image Text:
Notes to the 2020 Financial Statements Goodwill Property. plant, and equipment Accounts receivable QuickBrush The company amortizes goodwill over 20 years. The company uses a straight-line depreciation method over the economic lives of the assets, which range. from 5 to 20 years for buildings. The company uses a bad- debt allowance of 2% of accounts receivable. SmileWhite The company amortizes goodwill over 5 years. The company uses an accelerated depreciation method over the economic lives of the assets, which range from 5 to 20 years for buildings. The company uses a bad- debt allowance of 5% of accounts receivable.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (4 reviews)
Note 1 Goodwill QuickBrush amoritizes goodwill over 20 years while SmileWhite amoritizes goodwill over 5 years This means that QuickBrush recognizes g...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
ISE Essentials Of Investments
ISBN: 9781265450090
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
Question Posted:
Students also viewed these Business questions
-
The information in the following table comes from the 2014 financial statements of QuickBrush Company and SmileWhite Corporation: Determine which company has the higher quality of earnings by...
-
The information in the following exhibit comes from the notes to the financial statements of QuickBrush Company and SmileWhite Corporation: Determine which company has the higher quality of earnings...
-
The information in the table here comes from the financial statements of QuickBrush Company and SmileWhite Corporation. Determine which company has the higher quality of earnings by discussing each...
-
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: a. Accounts receivable at the beginning of the year are $310. Litzenberger has a 45-day collection...
-
On December 1, 2005 the Cone Company issued its 10%, $2 million face value bonds for $2.3 million, plus accrued interest. Interest is payable on November 1 and May 1. On December 31, 2007 the book...
-
Using the following data, compute the fixed asset turnover. Current assets, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,000 Fixed assets, end of...
-
True or False: For personal investment decision making, rates of return are used more frequently than present worth.
-
Schumann Shoe Manufacturer is considering whether or not to refund a $70 million, 10% coupon, 30-year bond issue that was sold 8 years ago. It is amortizing $4.5 million of flotation costs on the 10%...
-
Nick went out for dinner with a few friends. The restaurant bill should have been $175, but instead, the waitress brings the bill for $160. Find the absolute error and relative percentage error for...
-
Calculating implied volatility can be difficult if you dont have a spreadsheet handy. Fortunately, many tools are available on the web to perform the calculation; for example, www.optionprice.com...
-
A portfolio of non dividend-paying stocks earned a geometric mean return of 5% between January 1, 2014, and December 31, 2020. The arithmetic mean return for the same period was 6%. If the market...
-
Is it an inward force or an outward force that is exerted on the clothes during the spin cycle of an automatic washing machine?
-
Which component of total wellness includes social skills and interpersonal relationships? O environmental wellness Ooccupational wellness Ospiritual wellness emotional wellness intellectual wellness
-
Why do relational databases use primary keys and foreign keys? Group of answer choices to create logical relationships to create an attribute to create physical relationships to create an entity
-
Match the SQUARE related info. Agree on definitions Identify assets and security goals Develop artifacts to support security requirements definition Assess risk Select elicitation techniques Elicit...
-
wing Example 6.2.3 Find the complete viewing transformation that maps a window in world coordinates with x extent 1 to 10 and y extent 1 to 10 onto a viewport with x extent 1/4 to 3/4 and y extent 0...
-
a) Vijay is a certified Data Scientist and he has applied for two companies -Google and Microsoft. an offer from Microsoft. If he receives an offer from Microsoft, he has belief that there are 80%...
-
Davenport Mills is a division of Iowa Woolen Products, Inc. For the most recent year, Davenport had net income of $18,000,000. Included in income was interest expense of $1,500,000. The operations...
-
Experiment: Tossing four coins Event: Getting three heads Identify the sample space of the probability experiment and determine the number of outcomes in the event. Draw a tree diagram when...
-
On the basis of the utility formula above, which investment would you select if you were risk averse with A = 4? Use the following data in answeringCFA Utility Formula Data Expected Return, E(r) 12...
-
On the basis of the utility formula which investment would you select if you were risk neutral? Use the following data in answeringCFA Utility Formula Data Expected Return, E(r) 12 15 21 .24 Standard...
-
Suppose you have a project that has a .7 chance of doubling your investment in a year and a .3 chance of halving your investment in a year. What is the standard deviation of the rate of return on...
-
20) For each of the following transactions, indicate the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate +...
-
2 Stackelberg Suppose econ and man. econ are competing following the rules of the Stackelberg Oligopoly Model. Suppose man. econ is the leader and econ is the follower. Market demand for an economics...
-
Miller Company reports the following assets from the last two years: 2020 2019 Current Assets: Cash and Cash Equivalents $2,100 $1,900 Accounts Receivable 1,800 1,500 Merchandise Inventory 1,300...
Study smarter with the SolutionInn App