Group Members: 1. Patricia Meyer
2. Janea Nelson 3. Clay Richard
I. Financial Statements
1. $199,895 The Company uses the last-in, first-out (LIFO) method of accounting for the manufacturing inventories.
December 31, 2008
Work in Process
Manufacturing inventories for Wise Alloys are stated at the lower of cost or market based on the last-in, first-out (LIFO) method.
4. $11,200; No; Because of the market adjustment of $23,008
4. The company records it allowance for doubtful accounts based upon its assessment of various factors. The company considers historical experience, the age of the accounts receivable balances, credit quality of the company’s customers, current economic conditions, and other factors that may affect customer’s ability to pay.
6. 1) Tthe company will require collateral in certain instances to limit credit risk 2) The company also attempts to limit risk on trade receivables with the credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposures.
2. $16,597; 58.2%
3. 1) land and buildings 2) Machinery, equipment and internal-use software 3) Leasehold improvements
5. Straight-line method
6. Between 2 to 5 years
8. 1,428 acres
9. Good operating condition and are suitable for the conduct of its business.
10. $7.0 billion
11. $8.2 billion ; One reason could be that Apple had remaining payments for acquisition of property, plant and equipment in 2012 and it’s paying that difference in 2013
12. $11.0 billion; approximately $550 million for retail store facilities and approximately $10.5 billion for other capital expenditures.
1. Although the company believes the ownership of such patents, copyrights, trademarks and service marks is an important factor in its business and that its success does depend in part on the ownership thereof, the company relies primarily on the innovative skills, technical competence and marketing abilities of its personnel.
4. $911 million
5. Three to seven years
6. $960 million
8. $419 million
9. They test for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired.
11. $4,475 billion; 3%
12. 32%; it remained fairly consistent as a percentage of net sales.
13. Development costs of computer software to be sold, leased, or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product in available for general release to customers, In most instances, the Company’s products are released soon after technological feasibility has been established. Costs incurred subsequent to achievement of technological feasibility were not significant, and software development costs were expensed as incurred during 2013, 2012 and 2011
II. Inventory Overproduction
1. A technique that allows companies to calculate the cost of making a product by dividing total costs by the total number of products made.
2. The incentive is that it spreads fixed costs among more products to make the cost-per-product appear lower. If this company has excess