User Account

All Pages

The company capitalizes research and development expenditure

Assignment Help Accounting Basics
Reference no: EM131750234

Exercise 1

The following income statements and other information are available for the Schneider Company:

2014 2013 2012
Sales $371,300,000 $258,200,000 $184,600,000
Less cost of goods sold 204,215,000 123,936,000 88,608,000
Gross margin 167,085,000 134,264,000 95,992,000
Less:
Selling and administrative costs 25,991,000 25,820,000 18,460,000
Research and development 14,852,000 12,910,000 9,230,000
Income from operations 126,242,000 95,534,000 68,302,000
Less taxes on income 37,872,600 28,660,200 20,490,600
Net income $88,369,400 $66,873,800 $47,811,400
Total assets $719,600,000 $663,500,000 $435,300,000
Noninterest-bearing current liabilities 141,100,000 11,400,000 98,790,000
Cost of capital 12% 12% 12%

Calculate EVA for 2014. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over three years, including the year they are incurred. For external reporting purposes, research and development is expensed in the year incurred, as indicated in the income statements above. (Round answer to the nearest whole dollar, e.g. 5,725.)

Reference no: EM131750234

Questions Cloud

Quality cabinet company uses a standard costing system : Quality Cabinet Company uses a standard costing system and produced 1,860 cabinets during May. The standard cost of wood is $20 per linear foot
Under what circumstances the firm apply one rate worldwide : Under what circumstances should a firm with multinational operations and financing apply different discount rates to its investments in different countries?
Illustrating the effect of a minimum wage : Draw a supply and demand graph illustrating the effect of a minimum wage
General partnership with a limited liability company : Compare and contrast a general partnership with a limited liability company (LLC) Include any advantages and disadvantages one entity might have over the other.
The company capitalizes research and development expenditure : Calculate EVA for 2014. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures
Consider an organization in your field or industry : Consider an organization in your field or industry. Describe the essential systems necessary to facilitate continuous change
Write a paper on successful community problem solving : Identify a specific problem in your community that has been solved through a law enforcement initiative.
What is the disease model of drug use : What is the disease model of drug use? Do you think that drug abuse should be viewed in this way? Why or why not?
What aspects of the healthcare law would you encourage : If you were the Benefits Manager for a Fortune 500 company what aspects of the healthcare law would you encourage your company.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd