Answer:
b. $290,000
Explanation:
The computation of the cash flows from operating activities to be reported on the statement of cash flows is shown below:
= Net income reported on the income statement + decrease in account receivable
where,
Net income reported = $280,000
And, the decrease in account receivable is $10,000 ($70,000 - $80,000)
So, the cash flow from operating activities
= $280,000 + $10,000
= $290,000
The decrease in account receivable implies that more cash is come so it would be added and the same is shown above
Answer:
$2,466,000
Explanation:
Given that,
Cash Received = $1,600,000
Mortgage assume by purchaser = $950,000
Broker's commission = $75,000
points paid by seller = $9,000
Peyton's amount realized:
= Cash Received + Mortgage assume by purchaser - broker's commission - points paid by seller
= $1,600,000 + $950,000 - $75,000 - $9,000
= $2,466,000
Therefore, the amount realized by Peyton is $2,466,000.
Answer: Trade Industries
Explanation:
Trade industries survive as long as people and businesses can afford to trade goods and services. If entities are unable to afford consumption for a reason such as a decline in income, the trade industries will suffer.
When the economy is not healthy, income levels of people will reduce and so trade industries will suffer as opposed to a healthy economy where entities can afford goods and services which will ensure the survival of trade industries.
Answer:
1. Small expenditures which primarily benefit the current period. REVENUE EXPENDITURES
2. Cost less accumulated depreciation. BOOK VALUE
3. An accelerated depreciation method used for financial statement purposes. DOUBLE DECLINING BALANCE METHOD
4. Tangible resources that are used in operations and are not intended for resale. PLANT ASSETS
5. Equal amount of depreciation each period. STRAIGHT LINE METHOD
6. Expected cash value of the asset at the end of its useful life. SALVAGE VALUE
7. Process of allocating the cost of equipment over its service life. DEPRECIATION
8. Material expenditures that increase an asset's operating efficiency, productive capacity, or useful life CAPITAL EXPENDITURES
9. An accelerated depreciation method used for tax purposes. MACRS
10. Useful life is expressed in terms of units of production or expected use. UNITS OF ACTIVITY METHOD
Explanation:
