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Selected ledger account balances for Success Systems follow.
Required:
1. Assume that Success Systems does not acquire additional office equipment or computer equipment in 2014. Compute amounts for the year ended December 31, 2014, for Depreciation Expense Office Equipment and for Depreciation Expense Computer Equipment (assume use of the straight line method).
2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2014?
3. Compute the three month total asset turnover for Success Systems as of March 31, 2014. Use total revenue for the numerator and average the December 31, 2013, total assets and the March 31, 2014, total assets for the denominator. Interpret its total asset turnover if competitors average 2.5 for annual periods. (Round turnover to twodecimals.)
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