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qwelly [4]
2 years ago
11

Cash Flows from Operating Activities—Indirect Method

Business
1 answer:
ludmilkaskok [199]2 years ago
3 0
A. added
B. deducted
C. added
D. added
E. added
F. added
G. added
H. added
I. added
J. added
K. deducted
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Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a
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Answer and Explanation:

The computation of two different depreciation schedules is shown below:-

a. Using the Double-declining balance method

Year            Equipment Cost      Depreciation rate     Amount

2005                $90,000                     50%                  $45,000

2006                $45,000                      50%                  $22,500

2007                $22,500                      50%                  $11,250

2008 No depreciation as it is lower that straight line method that is $22,500 also we took the double rate of 25% so we consider 50%

b. Using the straight line method

Straight Line Depreciation Method:

$100,000 - $10,000

= $90,000

Year            Equipment Cost      Depreciation rate      Amount

2005                $90,000                     25%                      $22,500

2006                $90,000                      25%                     $22,500

2007                $90,000                      25%                     $22,500

2008                $90,000                      25%                     $22,500

Depreciation rate is

= 1 ÷ 4 years

=  25

2. The double declining method reduced the net income while the straight line method increased the net icnome

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If the company also has $1,000 of petty cash on hand (recorded in a separate account), what total amount should the company repo
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From the above question, the cash and cash equivalent balance as at April 30 is $1,000 plus all bank balances as at that date.

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Why do individuals have rights when they are accused of criminal acts?
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