Please Scroll Down to See Forums Below 
Rex
New member
I have to come up with this project for my accounting class. It's a pain in the ass so far. Details:
Assume you own a small flower shop and wish to begin delivery services in addition to your retail store.
Required:
Determine what type of vehicle you feel would be appropriate for your company. Explain why you selected this particular vehicle (include price, warranty, features, and any other reasons why you think this particular vehicle is best).
Make an assumption of how long you believe this vehicle will provide useful service to your company (in terms of both years and miles). In addition, make an assumption of what you believe the vehicle’s salvage value will be. You can either base this on a ‘best guess’, or discuss this with a dealership.
Discuss with a dealership (or find out through the Internet) what the costs to acquire your choice would be if (a) you purchase the vehicle outright, or (b) you lease the vehicle. Decide what you think would be the best choice (lease or purchase) and discuss your reasoning in your project report.
Create three different depreciation schedules:
Straight-line
Units of production (here you would use mileage). You would have to make an assumption of how many miles you will be traveling each year. Assume that your delivery business begins slowly, therefore as each year passes, you will be increasing miles traveled.
Double-declining balance.
Discuss the impact on the company’s annual net income, based on each of the three methods of depreciation. What will be the overall impact on net income over the life of the vehicle as a function of your choice of depreciation methods.
Prepare a professional-looking report which includes responses to the above requirements. I would suggest that you prepare the depreciation schedules in Excel and then copy and paste them into Word, although you can create tables in Word. Your report should be a minimum of 4 - 5 pages in length.
Any advice on which vehicle I should "purchase", its life, how the report should look, etc. is appreciated. K for help. Thanks in advance.
Assume you own a small flower shop and wish to begin delivery services in addition to your retail store.
Required:
Determine what type of vehicle you feel would be appropriate for your company. Explain why you selected this particular vehicle (include price, warranty, features, and any other reasons why you think this particular vehicle is best).
Make an assumption of how long you believe this vehicle will provide useful service to your company (in terms of both years and miles). In addition, make an assumption of what you believe the vehicle’s salvage value will be. You can either base this on a ‘best guess’, or discuss this with a dealership.
Discuss with a dealership (or find out through the Internet) what the costs to acquire your choice would be if (a) you purchase the vehicle outright, or (b) you lease the vehicle. Decide what you think would be the best choice (lease or purchase) and discuss your reasoning in your project report.
Create three different depreciation schedules:
Straight-line
Units of production (here you would use mileage). You would have to make an assumption of how many miles you will be traveling each year. Assume that your delivery business begins slowly, therefore as each year passes, you will be increasing miles traveled.
Double-declining balance.
Discuss the impact on the company’s annual net income, based on each of the three methods of depreciation. What will be the overall impact on net income over the life of the vehicle as a function of your choice of depreciation methods.
Prepare a professional-looking report which includes responses to the above requirements. I would suggest that you prepare the depreciation schedules in Excel and then copy and paste them into Word, although you can create tables in Word. Your report should be a minimum of 4 - 5 pages in length.
Any advice on which vehicle I should "purchase", its life, how the report should look, etc. is appreciated. K for help. Thanks in advance.
