Which of the following could result in the termination and liquidation of a partnership?1) Partners are incompatible and choose
1 answer:
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Answer:
<u>Balance sheet:</u>
Net liability = $285,349,947
<u>Income statement:</u>
Interest expense = $34,055,227
Statement of cash flows:
Operating: $32,000,000
Investing: Nil
Financing: $283,294,720
Explanation:
The workings are attached:
<u>Balance sheet</u>
Net liability = carrying value at the end of the year = $285,349,947
This will appear in the balance sheet as net liability.
<u>Income statement:</u>
Interest expense will be appearing in the income statement.
Interest expense = $32,000,000
<u>Statement of cash flows:</u>
<u>Operating cash flow:</u>
Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement.
Operating: It is the interest expense = $32,000,000
Investing cash flow:
Cash flow from investing activities is one of the sections on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.
Investing: This will be nil, as this is not an investment
Financing cash flow
Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends
Financing: This will be the $283,294,720
