196 A company had net sales of $1,540,500 in 2015 and $1,495,000 in 2016. Its average assets were $810,000 for 2015 and $800,000 for 2016. (1) Calculate the total asset turnover for each year. (2) Interpret and comment on the company’s efficiency in the use of its assets.
197. Schwartz Co. paid $780,000 cash to buy the plant assets of Kimberly Co. that went out of business. An independent appraiser assigned the following values to the assets acquired:
Land……………………………………..$522,000
Building…………………………………. 243,000
Equipment………………………………. 135,000
Total…………………………………….. $900,000
Prepare Schwartz’journal entry to record the acquisition of these assets.
198. A company purchased a special purpose machine on September 15 of the past year, and it was installed and ready to run on January 1 of this year. The following costs were incurred in the purchase and installation of the machine. Determine the total cost of the machine.
Invoice price plus sales tax.....................
|
$1,270,500
|
Freight costs..............................
|
9,000
|
Setup costs...............................
|
51,000
|
Costs to adjust machine to appropriate specifications....
|
36,000
|
Electrical connections .......................
|
32,000
|
Maintenance supplies for future use...............
|
108,000
|
Traffic fine incurred during transport of machine......
|
300
|
Cost of special foundation for machine
|
18,500
|