Question

Last year Apple charged $1,047,200 Depreciation on the Income Statement of Andrews. If Apple sold a fully depreciated piece of equipment at a loss, the effect on Andrews's financial statements would be (all other items remaining equal):

Answer 1

If Apple sold a fully depreciated piece of equipment at a loss, the effect on Andrews's financial statements would be Decrease Net Cash from operations on the Cash Flow Statement

Explanation:

In case an equipment is sold by the company for a value less than the amount reported, the cash flow statement should be changed to net revenue.

When the cash flow report is first included, the decline of net income is an important factor which causes a decrease in retained earnings from operations for each period. Net revenue represents a business ' profits and expenditures over a given period and offers investors a summary of the business performance of a corporation.