{"id":435785,"date":"2018-06-27T15:36:48","date_gmt":"2018-06-27T15:36:48","guid":{"rendered":"https:\/\/essaypaper.org\/?p=29714"},"modified":"2018-10-24T09:09:59","modified_gmt":"2018-10-24T09:09:59","slug":"period-4-quiz-fixed-asset-calculations","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/period-4-quiz-fixed-asset-calculations\/","title":{"rendered":"Period 4 Quiz-Fixed Asset Calculations"},"content":{"rendered":"

Period 4 Quiz-Fixed Asset Calculations<\/strong><\/h2>\n

Christy Company operates in the entertainment industry.\u00a0 In June 2013, Christy purchased Matt\u2019s Movies which produces and distributes various video products.\u00a0 The purchase resulted in $2.7 million in goodwill.\u00a0 Since then, Christy has undertaken a number of business acquisitions and diversifications as the company expands.\u00a0 Selected date from a recent annual report are as follows: ((dollars in thousands)<\/p>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Property, Plant & Equipment and Intangibles\u00a0 Balance Sheet<\/strong><\/td>\nCurrent Year<\/strong><\/td>\nPrior Year<\/strong><\/td>\n<\/tr>\n
Film cost (net of amortization)<\/td>\n$1,272<\/td>\n$\u00a0 991<\/td>\n<\/tr>\n
Artists\u2019 Contracts and other Entertainment Assets<\/td>\n761<\/td>\n645<\/td>\n<\/tr>\n
Property, Plant & Equipment (net)<\/td>\n2,733<\/td>\n2,559<\/td>\n<\/tr>\n
Excess of Cost over Fair Value of Assets Acquired<\/td>\n3,076<\/td>\n3,355<\/td>\n<\/tr>\n
Accumulated Depreciation on Property, Plant & Equipment<\/td>\n1,178<\/td>\n1,023<\/td>\n<\/tr>\n
Income Statement<\/strong><\/td>\n <\/td>\n <\/td>\n<\/tr>\n
Total Revenue<\/td>\n9,714<\/td>\n10,644<\/td>\n<\/tr>\n
Statement of Cash Flows<\/strong><\/td>\n <\/td>\n <\/td>\n<\/tr>\n
Income from Operations<\/td>\n880<\/td>\n445<\/td>\n<\/tr>\n
Adjustments<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
Depreciation<\/td>\n289<\/td>\n265<\/td>\n<\/tr>\n
Amortization<\/td>\n208<\/td>\n190<\/td>\n<\/tr>\n
Other Adjustments<\/td>\n-1,618<\/u><\/td>\n-256<\/u><\/td>\n<\/tr>\n
Net Cash provided by Operations<\/td>\n-241<\/td>\n644<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Required<\/p>\n

 <\/p>\n

    \n
  1. Compute the cost of the property, plant and equipment at the end of the current year.\u00a0 Explain your answer.<\/li>\n
  2. What was the approximate age of the property, plant and equipment at the end of the current year?<\/li>\n
  3. Compute the fixed asset turnover ratio for the current year. Explain your results.<\/li>\n
  4. What is the \u201cexcess cost over fair value of assets acquired\u201d?<\/li>\n
  5. On the consolidated statement of cash flows, why are the depreciation and amortization amounts added to income from continuing operations?<\/li>\n<\/ol>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Period 4 Quiz-Fixed Asset Calculations Christy Company operates in the entertainment industry.\u00a0 In June 2013, Christy purchased Matt\u2019s Movies which produces and distributes various video products.\u00a0 The purchase resulted in $2.7 million in goodwill.\u00a0 Since then, Christy has undertaken a Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-435785","post","type-post","status-publish","format-standard","hentry","category-essay-paper-writing"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/435785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=435785"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/435785\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=435785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=435785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=435785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}