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Complete the depreciation schedules. Show all formulas and work. All information is provided but may not...

Complete the depreciation schedules. Show all formulas and work. All information is provided but may not neccessarily be needed to comeplete the schedules.

You have been asked to make some recommendations to a company regarding financing for an upcoming major expansion. The company has been very successful but they will need a major inflow of cash to purchase the fixed assets they need for the expansion and hire additional employees. They believe they will need at least $1,500,000 and have asked for your recommendations as to how they should obtain the necessary funds. They have also asked for depreciation schedules for the new assets they plan to purchase. Assume the split between Current Assets and Long Term Assets is 20% current and 80% long term.
NFT Consulting and Sales Inc
Post Closing Trial Balance
October 31, 2018
Cash $              304,900
Accounts Receivable                    76,580
Allowance for Uncollectible Accounts $                  5,690
Supplies                    56,500
Inventory                    68,596
Prepaid Insurance                    57,890
Land                  260,000
Building                  550,000
Accumulated Depr – Building                    25,650
Office Equipment                  856,850
Accumulated Depr – Office Equip                    22,500
Computer Equipment                  556,500
Accumulated Depr - Computer Equip                    10,250
Accounts Payable                    56,560
Utilities Payable                    16,850
Wages Payable                    58,950
Interest Payable                    25,000
Long term Note Payable                 390,000
Mortgage Payable                 406,800
Common Stock ($1 par, 1,000,000,                 400,000
shares authorized, 400,000 issued
     and outstanding)
Retained Earnings              1,369,566
$           2,787,816 $          2,787,816
PLANNED ASSET ACQUISITIONS
Reminder that the company’s fiscal year is November 1 through October 31.
Asset Cost Useful life Salvage Value Depreciation Method Purchase Date
Land 100,000 N/A N/A N/A 1-Nov-18
Building 465,500 30 15,500 Straight line 1-Nov-18
Office Equipment 150,500 4 10,500 Straight line 1-Apr-19
Delivery Equipment 200,000 6 20,000 production 1-May-19
Additional information related to the $200,000 delivery equipment purchase: It is ESTIMATED that the equipment will be ABLE TO DRIVE 150,000 total miles over its lifetime. To complete the depreciation schedule, PRESUME that the actual miles driven for its useful life are as indicated below. Also, round depreciation expense per unit to the nearest cent and depreciation expense to the nearest dollar.
Year 1      12,560
Year 2      32,560
Year 3      31,650
Year 4      29,850
Year 5      26,500
Year 6      22,350
155,470
Building Depreciation Schedule
Depreciation for the Year
Asset Dep'ble Depreciation Accumulated Book
Date Cost basis Rate Expense Depreciation Value
11/1/2018
10/31/2019
10/31/2020
10/31/2021
10/31/2022
Office Equipment Depreciation Schedule
Depreciation for the Year
Asset Dep'ble Depreciation Accumulated Book
Date Cost basis Rate Expense Depreciation Value
4/1/2019
10/31/2019
10/31/2020
10/31/2021
10/31/2022
10/31/2023
Delivery Equipment Depreciation Schedule
Depreciation for the Year
Depreciation
Asset per unit Units of Depreciation Accumulated Book
Date Cost Production Expense Depreciation Value
5/1/2019
10/31/2019
10/31/2020
10/31/2021
10/31/2022
10/31/2023
10/31/2024

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