This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Cantanna Inc, is developing a pro forma income statement for the coming year. The chief financial ... (Read 115 times)

littleanan

  • Hero Member
  • *****
  • Posts: 575
on: Jul 11, 2018
Cantanna Inc, is developing a pro forma income statement for the coming year. The chief financial officer estimates that fixed assets are 70,000,000 and that sales will be 300,000,000.
 
  If depreciation is historically 20 of fixed assets, what is the expected amount of depreciation for the upcoming year (in dollars)?
  A) 14,000,000
  B) 20,000,000
  C) 60,000,000
  D) This figure cannot be reasonably estimated.

Question 2

If the future value of an annuity is known, then the present value of the annuity can be found using
  the present value of a lump sum formula, even if the amount of each annuity payment is unknown.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jgranad15

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jul 11, 2018
Answer to Question 1

A
Explanation: A) Depreciation = .20  (FA) = 0.0  (70,000,000 ) = 14,000,000.

Answer to Question 2

TRUE


littleanan

  • Member
  • Posts: 575
Reply 2 on: Jul 11, 2018
Excellent

flexer1n1

  • Member
  • Posts: 373
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Synthesis and major functions of the chief steroid hormones in animals. Synthesis and major functions of the chief steroid hormones in animals.
W-2 form issued to employees at the end of the year. W-2 form issued to employees at the end of the year.
The Gender Pay Gap Over Time: What Percentage of Men's Income Do Women Earn? The Gender Pay Gap Over Time: What Percentage of Men's Income Do Women Earn?
A developing fetus is cushioned in a sac of watery amniotic fluid A developing fetus is cushioned in a sac of watery amniotic fluid
Capital’s Share of Income in a Cross-Section of Countries Capital’s Share of Income in a Cross-Section of Countries
Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1000 a year for ... Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1000 a year for ...
Video: Replication of DNA and Chromosomes/ How do cells replicate their DNA? (Animation) no Audio

For a complete list of videos, visit our video library