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obligation is $90,400), after which it can be sold for $180,800. Everly
estimates that 4,520 tons of coal can be extracted.
5) In its 2011 annual report, Campbell Soup Company reports
beginning-of-the-year total assets of $6,276 million, end-of-the-year
total assets of $6,862 million, total sales of $7,719 million, and net
income of $805 million.
6) Compute Campbell’s asset turnover ratio. (Round answer to 3
decimal places, e.g. 4.871.)
Asset turnover ratio
7) Compute Campbell’s profit margin on sales. (Round answer to
2 decimal places, e.g. 4.87 or 4.87%.)
8) Compute Campbell’s return on assets using (1) asset turnover
and profit margin and (2) net income. (Round answers to 2 decimal
places, e.g. 4.87 or 4.87%.)Return on assets
9) Rembrandt Company acquired a plant asset at the beginning of
Year 1. The asset has an estimated service life of 5 years. An
employee has prepared depreciation schedules for this asset using
three different methods to compare the results of using one method
with the results of using other methods. You are to assume that the
following schedules have been correctly prepared for this asset using
(1) the straight-line method, (2) the sum-of-the-years'-digits method,
and (3) the double-declining-balance method.
Year
Straight-Line
Sum-of-the-
Years'-Digits
Double-Declining-
Balance
1
$11,970
$19,950
$26,600
2
11,970
15,960
15,960
3
11,970
11,970
9,576