Question

$100,000 5,000 94,000 120,000 51,700 66,000 28,388 20,400 to sea Read the scenario below and answer questions 1-3 in a Microsofie Word document. For question 1, give your answer and show your work For Questions 2 and 3 answer each question in a paragraph of at least 100 words. Use APA format and cite any sources Scenario Sanders Construction Co. specializes in building replicas of historic houses. Brett Sanders, president of Sanders Construction, is considering the purchase of various items of equipment on July 1, 2014 for $300,000. The equipment would have a useful life of 5 years and no residual value. Brett is considering depreciating the equipment by the straight-line method or the double declining balance method Answer the following questions 1.Calculate the depreciation for the first year using the straight-ine method and the Double declining balance method, show your work 2. In a short paragraph, explain the straight-ine depreciation method and the Double declining balance method 3. In your opinion, which method would be better for the company to use, why? Explain your answer. Make sure your document includes: . Your Name . Date . Course Name and Section Number . Unit Number . Assignment Name . Page Numbers Directions for Submitting your Assignment e here to search

Answer 1

1.)

	Blossom Company	Sunland company
sales revenue	100000	125000
sales return and allowances	6000	5000
Net sales	94000	120000
cost of goods sold	51700	54000
Gross profit	42300	66000
Operating expenses	28388	45600
Net income	13912	20400

2)

	Blossom Company	Sunland company
Profit margin [net income / net sales ]	13912 / 94000 = 14.8%	20400 / 120000 =17%
Gross Profit margin [gross profit / net sales ]	42300 / 94000 = 45%	66000 / 120000 =55%