The 2014 Annual Report of Tootsie Roll Industries contains the following information. On January 1, 2015, a
Question:
The 2014 Annual Report of Tootsie Roll Industries contains the following information.
On January 1, 2015, a machine was purchased for $97,200. The machine has an estimated salvage value of $6,480 and an estimated useful life of 5 years. The machine can operate for 108,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 21,600 hrs; 2016, 27,000 hrs; 2017, 16,200 hrs; 2018, 32,400 hrs; and 2019, 10,800 hrs. Part 1 Compute the annual depreciation charges over the machine’s life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, e.g. 45,892.)
Part 2 Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset’s life applying each of the following methods. (Round answers to 0 decimal places, e.g. 45,892.)
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Compute the following ratios for Tootsie Roll for 2014.
(a) | Asset turnover (Round answer to 4 decimal places, e.g. 0.8512 times.) | enter the asset turnover rounded to 4 decimal places | times | ||
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(b) | Return on assets (Round answer to 2 decimal places, e.g. 4.87%.) | enter the return on assets in percentages rounded to 2 decimal places | % | ||
(c) | Profit margin on sales (Round answer to 3 decimal places, e.g. 4.872%.) | enter the profit margin on sales in percentages rounded to 3 decimal places | % |
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield