B6001 - Financial Accounting - The Katash Company - Tootsie - Accounting & Finance Assignment Help

Assignment Task

Question 1: Katash

The Katash Company is a leader in the poultry market. It produces, sells and markets fresh and ice packed commodity chicken, and other frozen products, known for their value and healthful qualities. Katash’s balance sheet for the fiscal year ended on December 31, 2019 and 2018 disclosed the following:

                                                                             2019 2018
Property plant and equipment (at cost)  $1,676,978 $1,498,268
Less Accumulated depreciation              $ 515,026 $ 427,152
                                                                    $1,161,952 $1,071,116

In the income statement for 2019 Katash disclosed the following: Depreciation expense $ 106,630
 

In the cash flow statement for 2019, under Cash Flow from Investing Activities, Katash provided the following information:
 

Additions to property, plant and equipment $ (213,576)
 

Proceeds from dispositions of property, plant and equipment $ 15,294

Required:
a. What was the cost of property, plant and equipment purchased in 2019?
b. What was the net book value of property, plant and equipment disposed of during 2019?
c. Did Katash generate a gain or a loss on the disposition of PP&E? How much?
d. Katash calculates depreciation primarily using the straight-line method. Assuming the average life of all of Katash’s assets is 10 years, what was the average age of the property, plant and equipment disposed of in 2019?

Question 2: Tootsie

Please refer to Tootsie’s 2019 10-K available on canvas for this question. Note: The use of the term “during 2019,” or “fiscal 2019,” means during the fiscal year 2019 that ends on December 31, 2019.
You are only responsible for the questions that relate to the materials covered in class up to this point. The rest of the questions are optional (i.e., sub-part i, l, p, q) , but provide a good review for the final. Please read the questions carefully, they do not all relate to the same years. Part I: Warm-up and General

a. Describe in no more than two lines Tootsie Roll’s business.

b. How many employees does Tootsie have as of December 31, 2019?

c. What was Tootsie’s ratio of current assets to current liabilities on December 31, 2019? What was Tootsie’s ratio of property plant and equipment (net) to total assets on
December 31, 2019? Does the PP&E ratio make sense? Why or why not?

d. Tootsie has a large amount of Trademarks on their Balance Sheet. How could that have happened?

e. When does Tootsie recognize revenue (under what conditions)? Where are shipping and handling costs reported on the income statement? Does Tootsie have any significant customer risk (do their sales depend on a small number of large customers)?

f. Write the accounting equation for Tootsie, for 2018 (Use the numbers from Tootsie’s financial statements).

g. Are there any years in which comprehensive income was higher than Net Income? If yes, why did that occur?

Part II: Assets

h. Ignoring the fact that the company has different types of PP&E – based on their accounting estimates, if the company stopped investing in PP&E, roughly in how many years would their PP&E become obsolete (you can assume a salvage value of zero)? Does this have to be the case for economic purposes (production)?

Part III: Liabilities and Stockholders’ Equity

i. How much debt did Tootsie have on December 31, 2019? What was its Debt/Equity ratio on December 31, 2019?

This B6001 - Accounting & Finance Assignment has been solved by our Accounting & Finance Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.