Refer to Dell Computers (www.dell.com) and answer the following questions: A. Which depreciation method is used? B.
Question:
Refer to Dell Computers (www.dell.com) and answer the following questions:
A. Which depreciation method is used?
B. Does the company have intangible assets? If so, how are they amortized?
C. What is the carrying value of its property, plant, and equipment? What is the balance of accumulated depreciation for property, plant, and equipment?
D. Did the company have any cash inflows from investing activities? If so, what was the dollar amount?
E. Did the company have any cash outflows from investing activities? If so, what was the dollar amount?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
As an AI language model I do not have access to Dells internal financial records and I cannot access their website to review their financial statements However I can provide you with some general information about how companies typically approach these topics A Depreciation method The most commonly used depreciation methods are straightline doubledeclining balance and units of production Straightline is the simplest and most widely used method where the cost of the asset is spread evenly over its useful life Doubledeclining balance is an accelerated method where the assets value is depreciated at a faster rate in the earlier years of its life Units of production is used when the assets usage varies and the depreciation is based on the output or usage of the asset B Intangible assets Yes many companies have intangible assets such as patents copyrights trademarks and goodwill These assets are typically amortized over their useful life For example patents may have a useful life of 20 years and are amortized over that period C Carrying value and accumulated depreciation The carrying value of property plant and equipment is the net value of these assets on a companys balance sheet after accumulated depreciation has been subtracted Accumulated depreciation is the total amount of depreciation that has been recorded for an asset since it was acquired The balance of accumulated depreciation is subtracted from the cost of the asset to determine its net book value or carrying value D Cash inflows from investing activities Investing activities are the purchases and sales of longterm assets such as property plant and equipment as well as investments in other companies If Dell had any cash inflows from these activities it would be reported on the companys statement ...View the full answer
Answered By
Prince Kumar
I have teaches last 5 year in difference Colleges and universities. I'm principal in secondary school last 2 year.
0 Reviews
10+ Question Solved
Related Book For 
Introduction To AccountingAn Integrated Approach
ISBN: 9781119600107
8th Edition
Authors: Penne Ainsworth, Dan Deines
Question Posted:
