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ANEK [815]
3 years ago
7

In its cash flow statement for the current year, Fox Co. reported cash paid for interest of $70,000. Fox did not capitalize any

interest during the current year. Decreases occurred in several balance sheet accounts as follows:
Accrued interest payable $17,000

Prepaid interest 23,000

In its income statement for the current year, what amount should Fox report as interest expense?
Business
1 answer:
Nina [5.8K]3 years ago
6 0

Answer:

$76,000

Explanation:

The calculation of the interest expense is shown below:

= Reported amount of cash paid for interest + Decrease in prepaid interest - decrease in accrued interest payable

= $70,000 + $23,000 - $17,000

= $76,000

The decrease in prepaid interest is classified as a current asset and the  accrued interest payable is current liabilities and we know that the rise in current assets and a decline in current liabilities are excluded, while the decline in current assets and an increase in current liabilities are included.

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Answer:

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Explanation:

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This is achieved through established processes and ways of interaction between staff.

Bureaucracy is characterised by multiple layers and complex processes that makes actions and decisions slow.

This is exemplified in the given scenario where XYZ Corporation has a distinct division of labor, consistent rules, and a clear hierarchy. Managers maintain distance between themselves and subordinates, and promotions are awarded based on technical expertise.

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3 years ago
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3 years ago
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4 0
3 years ago
3 Balance sheet items for Nadew Travel Service were as follows at Dec. 31, 2018. Accounts payable Br. 23,100 Land Br. 90,000 Acc
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2 years ago
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