Help! I need a formula or 2

  • Thread starter Thread starter Jeanie
  • Start date Start date
J

Jeanie

Well no one has answered me so maybe nobody has my
answers.
First of all my depreciation formula I sent.
Cost- 266,000
Life- 4 years
Salvage- 26,000
Double declining method
the third year is 33,250 deprec. expense
year 4 has a balance of 7,250
how would you do a formula for the 4th year?????????????

And secondly my formulas for Ratio problems.

3516075 / (232,500 + 298,575)/2= 13.24

net income-preffered dividends /average comm stok equity=

net income + interest exp. /average total assets=

Any help is apreciated. Thanks in advance
 
The depreciation expense is the lesser of what you get using the
double-declining method (in this case $16,625) and the difference between
the carrying value at the beginning of the year and the salvage value (in
this case $7,254). So the correct depreciation would be $7,254.

I don't understand your second question at all. Sorry.
 
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