Assume that Success Systems does not acquire additional office equipment or comp

Question

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).

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?

Compute the three-month total asset turnover for Success Systems as of March 31, 2014. (Round your answer to 2 decimal places.)

Explanation / Answer

Requirement 1 Depreciation expense for the year ended December 31, 2014 For three months ended December 31, 2013 For three months ended March 31, 2014 Depreciation for 3 months Depreciation Expense for year ended December, 31 2014 Accumulated Depreciation -Office equipment                             415                              830                    415                             1,660 (415*4) Accumulated Depreciation -Computer equipment                         1,500                          3,000                1,500                             6,000 (1500*4) Requirement 2 Office Equipment Computer Equipment Book Value as on December 31, 2013 8300 24000 Accumulated Depreciation                         2,075                          7,500 Book Value as on December 31, 2014                         6,225                        16,500 Requirement 3 Formula Total Asset turnover = Net sales / Average fixed Assets Three month total asset turnover = 45,800/( (84,060+120,668)/2) Three month total asset turnover = 0.45 times

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