Major sources of shifts in the AS curve include changes in:
Group of answer choices
a. Business Expectations, inventories, contracts
a. Interest rates
b. World economy
c. All of the above
d. Government policy
In: Economics
Which of the following is the name for the risk of changes in the price or value of fixed-rate debt instruments resulting from changes in market interest rates?
Default risk
Liquidity risk
Inflation risk
Interest rate risk
In: Finance
In: Finance
How should marketers respond to price changes?
In: Economics
Which of these changes will result in increased blood pressure?
| decreased blood viscosity |
| increased blood volume |
| decrease cardiac output |
| increased vessel radius |
In: Anatomy and Physiology
Discussion the changes in the Tourism industry in St.Vincent and the Grenadines
In: Economics
Identify the changes in physical development in young adults.
In: Psychology
any changes to Caterpillars Inc global strategy.
In: Operations Management
Interpreting and Applying Disclosures on Property and
Equipment
Following are selected disclosures from the Rohm and Haas Company
(a specialty chemical company) 2005 10-K.
| Land, Building and Equipment, Net | ||
|---|---|---|
| (in millions) | 2005 | 2004 |
| Land | $ 139 | $ 141 |
| Buildings and improvements | 1,683 | 1,744 |
| Machinery and equipment | 5,570 | 5,656 |
| Capitalized interest | 329 | 320 |
| Construction in progress | 168 | 166 |
| Land, Building and Equipment, Gross | 7,889 | 8,027 |
| Less: Accumulated depreciation | 5,208 | 5,098 |
| Total | $ 2,681 | $ 2,929 |
The principal lives (in years) used in determining depreciation
rates of various assets are: buildings and improvement (10-50);
machinery and equipment (5-20); automobiles, trucks and tank cars
(3-10); furniture and fixtures, laboratory equipment and other
assets (5-10); capitalized software (5-7). The principal life used
in determining the depreciation rate for leasehold improvements is
the years remaining in the lease term or the useful life (in years)
of the asset, whichever is shorter.
IMPAIRMENT OF LONG-LIVED ASSETS
Long-lived assets, other than investments, goodwill and
indefinite-lived intangible assets, are depreciated over their
estimated useful lives, and are reviewed for impairment whenever
changes in circumstances indicate the carrying value of the asset
may not be recoverable. Such circumstances would include items such
as a significant decrease in the market price of a long-lived
asset, a significant adverse change in the manner the asset is
being used or planned to be used or in its physical condition or a
history of operating or cash flow losses associated with the use of
the asset ... When such events or changes occur, we assess the
recoverability of the asset by comparing the carrying value of the
asset to the expected future cash flows associated with the asset's
planned future use and eventual disposition of the asset, if
applicable...We utilize marketplace assumptions to calculate the
discounted cash flows used in determining the asset's fair value.
In 2005, $81 million of asset impairments were recognized for the
impairment of certain finite-lived intangible assets and fixed
assets across several of our chemical businesses and our Electronic
Materials segment.
(a) Compute the PPE (land, buildings and equipment) turnover for
2005 (Sales in 2005 are $7,994 million). (Round your answer to two
decimal places.)
Answer
(b) Rohm and Haas reported depreciation expense of $422 million in
2005. Estimate the useful life, on average, for its depreciable PPE
assets. (Round your answer to two decimal places.)
Answer
years
(c) By what percentage are Rohm and Haas' assets "used up" at
year-end 2005? (Round your answer to two decimal places.)
Answer
%
In: Accounting