Financial statement analysis - TMTOMH Company
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Use the following to answer questions 7 and 8:
TMTOMH Company reported in its annual report software refinement expenses of $12M, $15M and $18M for fiscal years 2007, 2008 and 2009, respectively. At the end of fiscal 2009 it had total assets of $140M. Net income was $20M for fiscal 2009, and it had a marginal tax rate of 35%.
7. If software refinement had been capitalized each year and amortized over a three-year period beginning in the year the cost was incurred, total assets at the end of fiscal 2009 would have been:
A) $185M
B) $172M
C) $158M
D) $157M
8. If software refinement had been capitalized each year and amortized over a three year period beginning in the year the cost was incurred, net income for fiscal 2009 would have been:
A) $31.7M
B) $29.75M
C) $21.95M
D) $14.95M
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Solution Summary
The solution computes the software refinement expenses for TMTOMH Company for various years and their capitalization & amortization amounts for those years.
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Use the following to answer questions 7 and 8:
TMTOMH Company reported in its annual report software refinement expenses of $12M, $15M and $18M for fiscal years 2007, 2008 and 2009, respectively. At the end of fiscal 2009 it had total assets of $140M. Net income was $20M for fiscal 2009, and it had a marginal tax rate of ...
Purchase this Solution
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