Aftech Ltd. is a firm that specializes in offering technical consulting services. Aftech reported operating income...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Aftech Ltd. is a firm that specializes in offering technical consulting services. Aftech reported operating income (EBIT) of $51.5 lakh and net income of $23 lakh in the most recent year. In the most recent year, the firm had $14 lakh training and recruitment expenses. A consultant who joins Aftech stays with the firm on average, 4 years. Training and recruitment expenses are amortisable over 4 years, and over the past 4 years they are : Year Current 1 2 Training and Recruitment Expenses (sin lakh) 10.40 9.10 8.30 Assuming a linear amortisation schedule (over 4 years), you are required to estimate (i) the value of human capital asset, (ii) the adjustment to net income. 3 4 14 12 Aftech Ltd. is a firm that specializes in offering technical consulting services. Aftech reported operating income (EBIT) of $51.5 lakh and net income of $23 lakh in the most recent year. In the most recent year, the firm had $14 lakh training and recruitment expenses. A consultant who joins Aftech stays with the firm on average, 4 years. Training and recruitment expenses are amortisable over 4 years, and over the past 4 years they are : Year Current 1 2 Training and Recruitment Expenses (sin lakh) 10.40 9.10 8.30 Assuming a linear amortisation schedule (over 4 years), you are required to estimate (i) the value of human capital asset, (ii) the adjustment to net income. 3 4 14 12
Expert Answer:
Answer rating: 100% (QA)
Year Current 1 2 3 4 Training and Recruitment Expenses in lakhs 14 12 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these finance questions
-
El Pico Company has two divisions: Maya and Aztec. During the year they had the following operating data: 1. Compute each division's contribution and segment margins, and the contribution each makes...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Solve the inequality. Write the solution in interval notation. |-3x + 1 5
-
The following task, in which you are asked to conduct a small number of simulation trials, should be done with manual calculations. Please be aware that the simulation results of such a small number...
-
The following information pertains to Chacon Inc. for last year: Beginning inventory in units ...........................5,000 Units produced .......................................20,000 Units sold...
-
Petes Plants has the following information as of October 31, 2010: Requirements 1. Compute the rate of inventory turnover for Petes Plants for the year ended October 31,2010. Round the result to two...
-
In 2014, Pennington Corporation had net sales of $600,000 and cost of goods sold of $360,000. Operating expenses were $153,000, and interest expense was $7,500. The corporations tax rate is 30%. The...
-
Question 18 (2 points) Express 64 base of 2. A) 215 B) 239 2 < (3/512)* as a power with a C) 224 D) 2
-
The smooth rod of mass M rests inside the glass. Determine the reactions on the rod. Given: M = 20 gm a = 75 mm b = 200 mm = 40 deg g = 9.81m/s2 b.
-
What is a tool to help entrepreneurs stay focused on taking the right action while reiterating the business model canvas?
-
A major airline company, which we'll call Deltacorp, closed trading yesterday at $20 per share. This morning, Deltacorp announced a significant decrease in flight capacity for the upcoming fiscal...
-
A SWOT analysis can be considered an abbreviated version of the internal audit and external assessment. Discuss whether the SWOT approach could be an acceptable way of gathering the background...
-
5. Corinna is thinking about making an investment in different mutual funds. She has been given 3 options for investment. Each mutual fund has different investment amounts and returns. Use the future...
-
10 Illini, Inc. incurred a taxable loss for the current year (2022). The company had been profitable prior to 2022 and decided to use the carryback provisions to offset a portion of the prior period...
-
A downton parking lot charges $5 per hour for the first 2 hours, then $2.50 per hour after that. How would I properly equate this?
-
sources of information include complaints or issues raised by employees, sources of Regarding performance, existing performance metrics or reports, financial reports, and quality reports, while...
-
Determine the optimal use of Applichem's plant capacity using the Solver in Excel.
-
Zap Rap Inc. is a manufacturer of audio CDs. The companys chief financial officer is trying to verify the accuracy of the December 31 work in process and finished goods inventories prior to closing...
-
The questions in this exercise are based on Target Corporation. To answer the questions, you will need to download Targets 2004 annual report (the companys fiscal year ended on January 29, 2005) at...
-
Gulf Fisheries, Inc., processes tuna for various distributors. Two departments are involved Cleaning and Packing. Data relating to pounds of tuna processed in the Cleaning Department during May are...
-
Find the steady-state response of the hydraulic control valve shown in Fig. 4.4 (a) to the forcing functions obtained by replacing \(x(t)\) with \(F(t)\) and \(A\) with \(F_{0}\) in Figs. 1.114....
-
What is the basis for expressing the response of a system under periodic excitation as a summation of several harmonic responses?
-
True or False. The change in momentum is called impulse.
Study smarter with the SolutionInn App