Answer using the actual financial statements of Tootsie Roll from 2077-2009 or appendix a of the book listed @ the end.(a) What were the total cost and book value of property, plant, and equipment at December 31, 2009? (b) What method or methods of depreciation are used by Tootsie Roll for financial reportingpurposes? (c) What was the amount of depreciation and amortization expense for each of the 3 years2007–2009? (Hint: Use the statement of cash flows.) (d) Using the statement of cash flows, what are the amounts of property, plant, and equipmentpurchased (capital expenditures) in 2009 and 2008? (e) Explain how Tootsie Roll accounted for its intangible assets in 2009." (Kimmel 535)Kimmel. Essentials of Accounting for Business 4th Ed.
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Hello - Can you please explain how you came up with the answer to part a? The answer does not make sense to me when compared to the data in the book???
Please send me a copy of the data from your book so I may compare with mine.
Ok, what info do you need exactly? The appendix is several pages long.
Please let me know then amounts showing under Property, Plant and Equipments; and the accumulated depreciation.
This is how it looks in the book:
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land - 21,559
Buildings - 102,374
Machinery and equipment 296,787
Construction in progress - 6,877
Less Accumulated dep 206,876
Net Property, plant & equip 220,721
The "Total Cost" of the Property, Plant and Equipment is the total of the items under Property, Plant and Equipment.
Ok. Thanks. Now it seems so obvious to me. I have a SW background so this accounting is completely out of my element. Thank again.