Answer:
a. used net cash of $2,000
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net loss -$13,000
Adjustment made:
Add : Depreciation expense $4,000
Add: Decrease in accounts receivable $5,000
Less: Increase in inventory -$8,000
Add: Increase in accounts payable $10,000
Total of Adjustments $11,000
Net Cash flow from Operating activities -$2,000
I’m going to go with b. Will be considered in the decision making process.
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Answer:
Over the economic life of the asset.
Explanation:
An asset obtained under a financial lease must be depreciated in the same way as the company would depreciate any other similar fixed asset. E.g. a leased truck should be depreciated similarly to other trucks owned by the company.
In a financial lease, the lessor amortizes the asset's value, while the lessee depreciates the assets as common fixed assets (a lessee doesn't amortize).
Answer:
$27,800
Explanation:
Given that
Government Divisional segment margin = $40,300
Export Products Division = $92,700
Common fixed expenses = $105,200
The computation of net operating income is shown below:-
Total segment margin = Government divisional segment margin + Export Products Division
= $40,300 + $92,700
= $133,000
Net operating income = Total segment margin - Common fixed expenses
= $133,000 - $105,200
= $27,800
