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Readme [11.4K]
4 years ago
7

What are the three sections of the Statement of Cash Flows and what is the difference between and value of the information conta

ined in each of these sections?
Business
1 answer:
Reika [66]4 years ago
4 0

Answer:

Operating activities

Investing activities

Financing activities

Explanation:

The Statement of Cash Flow is divided into three sections: operating activities, investing activities and financing activities.

  • Operating Activities: cash flows from operating activities details flows arising from the normal and regular business operating of the company. It includes items such as cash-based revenue, cash-based expenses, changes in working capital, etc.
  • Investing Activities: cash flow from investing activities details flows spent on investment assets or earned from sale of investment assets. It includes cash spent on acquiring new plant and machinery, as well as cash realized from the sale of existing assets.
  • Financing Activities: cash flows from financing activities details cash realized from capital providers as well as returns to them. It includes flows from new equity and debt issuance, dividends and interests paid to capital providers, etc.
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iSooky has a spotter truck with a book value of $40,000 and a remaining useful life of five years. At the end of the five years
IrinaK [193]

Answer: $36,000 increase.

Explanation:

Cost of keeping Current Truck.

The cost of keeping the current truck will be the Opportunity Cost of not purchasing the New truck.

The New truck is capable of reducing Manufacturing costs by $25,000 a year for 5 years so,

Cost of Keeping Current Truck = 25,000 * 5

= $125,000

Cost of buying new truck

It is given that if the company trades in the old truck they get a $31,000 reduction.

The Cost Price of the new truck is therefore,

= 120,000 - 31,000

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The difference between the costs will be,

= 125,000 - 89,000

= $36,000

If buying a new truck will reduce expenses by $36,000 then that means it will increase income by $36,000.

8 0
3 years ago
Another term for adding money to an account is _____ .
Kobotan [32]
The correct answer should be depositing since depositing money is a collocation when it comes to banks.
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4 years ago
You're 35 years old now, and you want to purchase life insurance which will cover your spouse for your lost income in the event
Korvikt [17]

Answer:

c. 30-year term policy

Explanation:

If I am 35 years old now, and want to purchase life insurance which will cover my spouse for my lost income in the event of your death; and if I want this policy to last until what would be your normal retirement age of 65.

Based on the given information, the best policy to buy is a 30-year term policy because logically that adds up as 30 + 35 = 65 years.

A 30-year term policy means the policy expires 30 years after it began.  Generally, a 30-year term is the maximum length of coverage offered, and is usually available to those within the ages 18 to 50.

6 0
3 years ago
The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following i
dem82 [27]

Answer:

$213,500.

Explanation:

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6 0
2 years ago
Electronic résumés have an attractive, highly formatted appearance. T F​
MAXImum [283]

Answer:

False.

Explanation:

False.

8 0
3 years ago
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