The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm.

Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/18 year-end financial statements for Company B:

You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $260,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero.

Required:

1. In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2015 through 2018 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets.

2. If Company B decided to switch depreciation methods in 2018 from the straight line to the double-declining-balance method, prepare the 2018 journal entry to record depreciation for the year, assuming no journal entry for depreciation in 2018 has yet been recorded.

The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/18 year-end financial statements for Company B: Income Statement Depreciation expense $ 6,500 Balance Sheet Assets: Plant and equipment, at cost $ 65,000 Less: Accumulated depreciation (26,000 ) Net $ 39,000 You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $65,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero.

Required: 1. In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2015 through 2018 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets.

2. If Company B decided to switch depreciation methods in 2018 from the straight line to the double-declining-balance method, prepare the 2018 journal entry to record depreciation for the year, assuming no journal entry for depreciation in 2018 has yet been recorded.

The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm.

Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/18 year-end financial statements for Company B:

You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $200,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero.

Required:

1. In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2015 through 2018 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets.
2. If Company B decided to switch depreciation methods in 2018 from the straight line to the double-declining-balance method, prepare the 2018 journal entry to record depreciation for the year, assuming no journal entry for depreciation in 2018 has yet been recorded.

Required information

[The following information applies to the questions displayed below.]

Cascade Company was started on January 1, Year 1, when it acquired $168,000 cash from the owners. During Year 1, the company earned cash revenues of $96,300 and incurred cash expenses of $61,800. The company also paid cash distributions of $12,000.

Required
Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)

c. Cascade is a corporation. It issued 11,000 shares of $11 par common stock for $168,00

Explore of each of the questions below and provide your perspective :

1. A company faced by an elastic demand curve will always benefit by decreasing price. True or false? Explain.
2. In 2002 the U.S. Postal Service increased first-class postage rates from 34₵ to 37₵. The service had been losing money. One of the reasons is increased competition from companies such as United Parcel Service and Federal Express. Another reason is the use of faxes and e-mail, as well as electronic bill payment. With this decrease in demand for postal services, why do you think that the Postal Service is seeking a rate increase?

Which entry method did Tesco use to enter the U.S. market? Why was this method chosen over others?

Tesco’s new stores in the United States are called Fresh & Easy markets. Why did Tesco adopt the new name for its stores?

Tesco has conducted extensive research on the habits of American shoppers. Why was the research important to Tesco? How will it help the company succeed in the United States?

Tesco prefers to hire local managers rather than use expatriates to run its foreign operations. How might this strategy help the firm succeed in the United States?

Chapter 9 Question Most cities are served by only one cable company. How might this monopoly power affect prices and service? What should the government do, if anything? Chapter 10 Question Why might inflation accelerate as the unemployment rate declines? Chapter 11 Question From March 2009 to 2013, the U.S. stock market more than doubled in value. How might this have affected aggregate demand? What happens to aggregate demand when the stock market plunges? (you must give either a professional or personal example with the discussion portions)

The FDA in the U.S. has just announced that it is in the final stage of approving a vaccine for final stage trials before starting production of a vaccine for Covid-19.

Given this positive news, the expected U-shape recovery in global economies, is now projected to assume a V-shape recovery.

The IMF now projects a 5.5 percent growth rate worldwide for 2021 and 3.6 percent for 2022.

Choose a bank or REIT listed on the Singapore Stock Exchange (SGX) to carry out your investment analysis, apply your analysis to the most likely impact of such a scenario for the

sector that your chosen company belongs to.

QUESTION 23

1. Company	Ticker	Price	Number of shares	Beta
   American Electric power	AEP	$                  91.40	1000	0.07
   Dillards	DDS	$                  72.98	1000	1.15
   AMD	AMD	$                  39.10	2000	3.06
   U.S. Steel	X	$                  13.51	5000	3.04
   Google	GOOG	$             1,294.54	250	1.01
   Walmart	WMT	$                119.61	3000	0.41
   YUM Brands	YUM	$                  97.69	2000	0.37
   Jet Blue	JBLU	$                  19.01	5750	0.85

   What is the total value of this portfolio?

   What is the portfolio Beta?

   You will need this information for the next questions, please note your answers.