Learning Module 7: Analysis of Long-Term Assets

FINANCIAL STATEMENT ANALYSIS

NoteDownload Files

Download PDF | Download Word |

testing

---

\(\substack{\text{Estimated total }\\\text{useful life}} =\) \(\substack{\text{Time elapsed since }\\(\text{purchase Age})} +\) \(\substack{\text{Estimated }\\\text{remaining life}}\)

\(\substack{\text{Estimated total }\\\text{useful life}} =\) \(\frac{\text{Historical cost}}{\text{annual depreciation expense}}\)

\(\substack{\text{Historical cost}} =\) \(\substack{\text{Accumulated depreciation}} +\) \(\substack{\text{Net PPE}}\)

\(\substack{\text{Estimated total }\\\text{useful life}} =\) \(\substack{\text{Estimated age }\\\text{of equipment}} +\) \(\substack{\text{Estimated }\\\text{remaining life}}\)

\(\substack{\text{Historical cost }\div\\\text{annual depreciation}\\\text{ expense}} =\) \(\substack{\text{Accumulated depreciation}\\\div\text{ annual depreciation}\\\text{ expense }} +\) \(\substack{\text{Net PPE }\div\\\text{annual depreciation}\\\text{ expense}}\)

View Markdown Source

$\substack{\text{Estimated total }\\\text{useful life}} =$
$\substack{\text{Time elapsed since }\\(\text{purchase Age})} +$
$\substack{\text{Estimated }\\\text{remaining life}}$

$\substack{\text{Estimated total }\\\text{useful life}} =$
$\frac{\text{Historical cost}}{\text{annual depreciation expense}}$


$\substack{\text{Historical cost}} =$
$\substack{\text{Accumulated depreciation}} +$
$\substack{\text{Net PPE}}$


$\substack{\text{Estimated total }\\\text{useful life}} =$
$\substack{\text{Estimated age }\\\text{of equipment}} +$
$\substack{\text{Estimated }\\\text{remaining life}}$


$\substack{\text{Historical cost }\div\\\text{annual depreciation}\\\text{ expense}} =$
$\substack{\text{Accumulated depreciation}\\\div\text{ annual depreciation}\\\text{ expense }} +$
$\substack{\text{Net PPE }\div\\\text{annual depreciation}\\\text{ expense}}$

---