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3 years ago

Which of the following cash flows should be included in the investing Section of the statement of cash

Business

1 answer:

Ber [7]3 years ago

6 0

Answer:

Cash flow items to be included in the investing section of the statement of cash flows under US GAAP

1. Cash received in sale of Equipment

2. Purchase of a piece of land

3. Sale proceeds from debt investments

Explanation:

Cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.

Some examples of investment activity from the company’s perspective would include:

Cash outflow from the purchase of an asset (land, building, equipment, etc.).

Cash inflow from the sale of an asset.

Cash outflow from the acquisition of another company.

Cash inflow resulting from a merger.

Cash inflow resulting dividends paid on stock owned in another company.

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4 years ago

An example of an entrepreneur would be someone who opened up a gourmet popcorn store in the local mall.

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This is True.

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3 years ago

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The general ledger of Sandhill Corporation as of December 31, 2021, includes the following accounts: Copyrights $ 58000 Deposits

Dafna1 [17]

Answer:

$687,000

Explanation:

Intangible Assets are identifiable assets of a non-monetary asset and without physical substance. Intangible assets include trademarks, copyrights and goodwill that is acquired.

Important to note that Internally generated Goodwill is not defined as an assets. Thus, deposits with advertising agency of $35,000 are not included within tangible assets

<u>Calculation of Total Intangible Assets will be :</u>

Intangible Assets Calculation = (Copyrights) $ 58,000 + (Goodwill Acquired) $560,000 + (Trademarks) $69,000

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Sandhill's balance sheet as of December 31, 2021 should report total intangible assets of $687,000

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3 years ago

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3 years ago

Lardo Inc. plans to build a new manufacturing plant in either Country X or Country Y. It projects gross revenue in either locati

Tom [10]

Answer:

Following are the solution to the given points:

Explanation:

For point a:

After-tax profit for each country.

For Country X:

$Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000\\\\ Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,500,000\\\\ Pre-tax \ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,500,000 \\\\$

$Tax \ [ 2,500,000 \times 20\% \ ] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500,000\\\\ After-tax\ \ profit\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,000,000$

For Country Y:

$Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000 \\\\Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000\\\\$

$Pre-tax\ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,200,000\\\\Tax\ [40,00,000 \times 10\%] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 400,000 \\\\After-tax\ \ profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000$

For point b:

For Country X:

Lardo is expected to establish its new plant in Country X, because Country X's after tax income is higher than Country y's after-tax income [$1,800,000].

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3 years ago