The Following Ratios Have Been Calculated for Peters Limited for 2014

question 113

Essay

The following ratios have been calculated for Peters Limited for 2014: The 2014 financial statements for Peters Limited with missing information follows: Instructions
Use the above ratios and information from the Peters Limited financial statements to fill in the missing information on the financial statements. Follow the sequence indicated. Show calculations that support your answers.

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Definitions:

Incremental Depreciation

The additional depreciation expense recorded when there is a change in the estimated useful life or salvage value of an asset.

Opportunity Costs

The cost of foregone alternatives, representing the benefits one could have received by taking an alternative action.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are worth more than their cost to achieve specific financial goals.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the asset's cost is evenly spread over its useful life.