Use the information about Billy's Burgers to answer the following question(s):

-Using the percent of sales method, and assuming 20% growth in sales, estimate Billy's Burgers' depreciation for 2011.
A) $17.2 million
B) $50.8 million
C) $12.0 million
D) $20.6 million

Question

Use the information about Billy's Burgers to answer the following question(s):
 
-Using the percent of sales method, and assuming 20% growth in sales, estimate Billy's Burgers' depreciation for 2011.
A) $17.2 million 
B) $50.8 million 
C) $12.0 million 
D) $20.6 million

Quizplus · Accepted Answer

D) Dep. For 2011 = Sales of 2011 × (Depreciation of 2010 / Sales of 2010) = ($246 million × 120%) × ($17.2 million / $246 million) = $20.6 million

Use the Information About Billy's Burgers to Answer the Following