# Textbook Solutions

### Brislin company – Gain or Loss on Equipment Sale

Calculating Gain or Loss On June 1, 2017, Brislin company sold some equipment for $22,000. The original cost was $80,000, the estimated salvage value was $8,000, and the expected useful life was 8 years. The equipment was fully depreciated. How much is the gain or loss on the [...]Read more

### Walk Co – Net Income Generated from Assets Invested

Net Income Generated from Assets Walk Co’s average total assets are $200,000, net sales total to $100,000, and net income is $40,000. How much net income did Walk Co generate for each dollar of assets invested? Solution This is also called the Return on Assets ratio, which [...]Read more

### Schneider Trucking Inc. – Semi Truck Depreciation

Depreciation on Semi-Truck Schneider Trucking Inc. purchased a new semi-truck on January 1, 2016 for $200,000. Its useful life is expected to be 4 years and its salvage value is estimated at $25,000. What is the depreciation for 2017 using the declining-balance method at double [...]Read more

### Anisha Enterprises – Intangible Asset Amortization

Intangible Asset Amortization Given the following account balances at year end, how much is amortization expense on Anisha Enterprises income statement for the current year if Anisha thinks all of its intangibles should be amortized over ten years? Sales revenue 45,000,000 [...]Read more

### Financial Statement Analysis: Columbia Sportswear and VF Corporation

Financial Ratio Calculations for VF and Columbia Analysis providing conclusions concerning the management of accounts receivable based on the financial statements of Columbia Sportswear Company presented in Appendix Band the financial statements of VF Corporation presented in [...]Read more

### Pennsylvania Refining Company – Is the correlation in the population greater than zero?

Problem Overview In this tutorial, we are going to find out if the correlation in a sample population greater than zero using Excel. Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number of gallons sold. For a sample of 20 [...]Read more

### Maumee Ford-Mercury- Volvo Coefficient of Determination Solution

Problem Details The problem we are tackling in this tutorial is about car dealership data. We will show you how the find the Coefficient of Determination using Excel. The owner of Maumee Ford-Mercury- Volvo wants to study the relationship between the age of a car and its selling [...]Read more

### Bi-lo Appliance Super-Store Correlation Coefficient Solution

The famous Bi-Lo regression question goes something like this: Bi-lo Appliance Super-Store has outlets in several large metropolitan areas in New England. The general sales manager aired a commercial for a digital camera on selected local TV stations prior to a sale starting on [...]Read more

### Solve the Regression Equation for Random Observations

In this tutorial, we will use a series for random observations to perform a simple linear regression. The following sample observations were randomly selected. X 4 5 3 6 10 Y 9.8 12.6 9 14.4 19.6 Part A – The Regression Equation Regression Equation: Y = a + bX We can solve [...]Read more

### E6-9 Digital Camera Shop Inc – Lower of cost or market LCM Valuation

E6-9 Digital Camera Shop Inc In this tutorial, we will look how to calculate the Lower‐of‐cost‐or‐market (LCM) for a camera shop. The main principle here is to take the lowest valuation from either book costs or actual market valuation, as this will provide the most conservative [...]Read more