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Accounting Problems -10 questions!

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1) What is Blockbuster's amortization timetable? Do you think it is appropriate?;2) What would be the impact on Blockbuster's 1988 earnings per share if 5 year amortization;were applied to this goodwill?;3) What would have been the effect on earnings per share if Video Superstore purchases were;not included in 1988 revenues?;4) Over what period does BV depreciate its "base stock? videotapes?;5) What was the effect on earnings per share of the change in depreciation method for ?hit? tapes;(assume that hit tapes made up 25% of new tape purchases, and that the average hit tape;was owned for half the year)?;6) What was the effect on earnings per share of these sales to franchisees?;7) What was the effect on 1988 earnings per share, of the non-recurring items: area development;fees and initial franchise fees?;8) What would BV's 1988 earnings per share be after all of the above adjustments?;9) Ignoring #3 above, what would BV's 1988 earnings per share be after;the above adjustments?;10) What would BV's Price/Earnings ratio be, given all of the above;adjustments (including #3)?

 

Paper#76272 | Written in 18-Jul-2015

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