Homework Answers
A.
Annual amortization expense:
Patent = $7,850 ($31,400/4) per year
B.
|
DYNAMO MANUFACTURING Horizontal Statements Model |
||||||||||||||||
| Event | Balance Sheet | Income Statement | Statement of cash flow | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenue | - | Expense | = | Net income | |||||||
| Cash | + | Patent | + | Goodwill | 91,500 | |||||||||||
| 91,500 | ||||||||||||||||
| Acquisition | -68,300 | 31,400 | 36,900 | -68,300 | IA | |||||||||||
| Patent | -7,850 | -7,850 | 7,850 | -7,850 | ||||||||||||
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