Explain the methods for calculating depreciation

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Question: Butell Manufacturing has an outstanding $11 million loan with Citicenter Bank for the current year. As required in the loan agreement, Bute11 reports selected data items to the bank each month. Based on the following information, is there any indication of a developing problem loan? About what dimensions of the firm's performance should Citicenter Bank be concerned?

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Butch' has announced within the past 30 days that it is switching to new methods for calculating depreciation of its fixed assets and for valuing inventories. The firm's board of directors is planning to discuss at its next meeting a proposal to reduce stock dividends in the corning year.

Reference no: EM131723169

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