COMMERCE 4FX3 Study Guide - Shoppers Drug Mart, Capital Expenditure, Netbook
31 Oct 2014
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Answer the following questions using the financial statements of shoppers drug mart (sc. to) provided to you. What would be the best estimate of the company"s accounts receivable on december 31, 2013: assume that the company takes depreciation and amortization only on property, equipment, and intangible assets at a constant declining-balance rate, without any residual value, using the beginning net book value for the year. Finally, assume that the company defines capex as the acquisition and development of property, equipment, and intangible assets, net of the proceeds from their disposition. The company expects sales to grow at 3% per year and also expects to spend a constant percentage of sales as capex in every forecast year. If the constant percentage equals the average of the two actual percentages in the years ended december 31, 2011, and 2012, what will be the forecasted net book value of the assets subject to depreciation and amortization on.
