An incident occurred at a corporation that had no impact on total assets or net income, but did result in a cash outflow from investing operations due to a loan with a three-year term to maturity.
Cash transactions involving net income are considered operating activities. Cash transactions involving noncurrent assets are considered investing. Cash transactions involving noncurrent liabilities and owners' equity are considered financing activities. Operating, investing, and financing operations are the three different types of cash flows. Transactions involving equities, loans, and dividends are all examples of financing operations. Investors can learn about a company's financial health and how well its capital structure is managed by looking at the cash flow from financing operations.
Financial activities are company transactions or occurrences that have an impact on long-term liabilities and equity. In other words, financial activities include any dealings with lenders or investing that are utilized to finance business growth or operations. The third group of cash transactions shown on the statement of cash flows is these transactions.
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A, True
You need a short term goal to help you achieve your long term ones.
How are you going to get to A to Z if you can't get pass B?
Answer:
$7,326
Explanation:
Double Decline Balance = 2 x SLDP x SLDBV
where,
SLDP = Straight Line Depreciation Percentage
= 100 ÷ useful life
= 100 ÷ 20
= 5 %
and
SLDBV = Straight Line Percentage Book Value
Year 1
Double Decline Balance = 2 x 5% x $81,400
= $8,140
Year 2
Double Decline Balance = 2 x 5% x ($81,400 - $8,140)
= $7,326
Therefore
The machine's second-year depreciation using the double-declining balance method is $7,326.
The payback period is 4.06 years.
<h3>What is the payback period?</h3>
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Amount recovered in the first year = 46,700 - 10,000 = 36,700
Number of years it would take to recover 36,700 = 1 + (36700 / 12,000) = 4.06 years
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