Answer: $50,000
Explanation:
From the question, we are informed that a machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash.
The amount that should be reported as a source of cash under cash flows from investing activities will be $50,000. It should be noted that only cash effects of transaction has to be added to the cash flow statement.
Answer:
a. less risky strategies first.
Explanation:
When find enter into foreign markets their knowledge and experience in the market space is limited. They will most likely implement less risky strategies of doing business bearlier on.
As they get to understand the market dynamics of the foreign country they are more confident in doing more risky transactions.
For example they can start with local production and exporting to the foreign country first. Then later open up operations in the foreign country.
Answer:
C. Estimated warranty payable for $26,500.
Explanation:
The monthly sales are $530,000 and the warranty costs are 5% of monthly sales,
Therefore, Warranty costs will be = $530,000*5% = $26,500.
Now, we know that no defective products were returned during the current month, hence the other options in the questions are discarded and Estimated warranty payable is taken at the month end.
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