Interpreting and Applying Disclosures on Property and Equipment
Following are selected disclosures from the Evett and Sternard Company (a specialty chemical company) 2007 10-K.
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 ... For the year ended December 31, 2007, we recognized approximately $24 million of fixed asset impairment charges.
(a) Compute the PPE (land, buildings and equipment) turnover for 2007 (Sales in 2007 are $8,897 million). (Round your answer to two decimal places.)
Which of the following modes of entering a foreign market allows for creation of new operations in a foreign country from the ground up?a) Greenfield investment.b) Joint ...Jul 06 2021
atch these types of organizations with the firms shown below. An answer may be used more than once.a.Merchandisingb.Manufacturingc.Serviced.Nonprofit11.Lowe’s12.Chrysler...Dec 24 2019
A department selling staple merchandise anticipates fall season sales (6 months = 26 weeks) of $150,000 with a stock turn (inventory turnover) of 5. How much inventory sh...Jun 20 2021
The switch in Figure P10–27 has been in position A for a long time and is moved to position B at t = 0. Transform the circuit into the s domain and solve for IC(s), iC(t)...Jul 27 2020
Are the bioethical issues on abortion thought to be unethical?Aug 22 2020
Suppose you are designing a multiplayer game that has n ≥ 1000 players, numbered 1 to n, interacting in an enchanted forest. The winner of this game is the first player w...Jun 13 2020
P12-16 MacIntyre Fabrications, Ltd., of Aberdeen, Scotland, has recently begun a continuous improvement campaign in conjunction with a move toward Lean Production. Mana...Jun 26 2020
The beginning balance sheet of Water Source Co. included a $800,000 investment in Larsen stock (35% ownership). During the year, Water Source completed the following inve...Apr 12 2020
The frequency distribution shows the results of 200 test scores. Are the test scores normally distributed? Use (alpha) α = 0.05 Complete parts (a) through (d).Class Bo...Apr 20 2020
Draw the Lewis structure of the sulfate ion, SO42-. How many valence electrons are present? What is the electron group geometry? What is the molecular geometry? What are ...May 15 2021