1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sasho [114]
2 years ago
8

Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a mi

nus sign.)
a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss.
b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain
c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000 Cash flows from investing activities
Business
1 answer:
cestrela7 [59]2 years ago
8 0

Answer:

Cash flow from investing activities  

Cash received from sale of truck = $8,600

Cash received from sale of machine = $5,600

Cash paid for purchase of investment  = -$16,300

Net cash used by investing activities = ($2,100)

Explanation:

Given:

a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss.

b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain

c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000

Cash flow from investing activities  

Cash received from sale of truck = $8,600

Cash received from sale of machine = $5,600

Cash paid for purchase of investment  = -$16,300

Net cash used by investing activities = ($2,100)

You might be interested in
Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The firm's target weighted avera
Savatey [412]

Answer:

0.73

Explanation:

Given that

WACC = 11%

Tax rate = 34%

Cost of equity = 14.9 %

Cost of debt = 8.6%

Recall that

WACC = (cost of equity × % of equity) + (cost of debt × % of debt) + ( 1 - tax rate)

We are to find

Cost of debt and cost of equity

Let

Cost of debt be x

Cost of equity be (1 - x)

Thus,

0.11 = (1 - x)(0.149) + (x)(0.086)(1 - 0.34)

x = 0.4228

Therefore,

Debt-equity ratio

= Cost of debt/cost of equity

= 0.4228/(1 - 0.4228)

= 0.73

4 0
3 years ago
Read 2 more answers
When researching your perspective business, it’s most important that you know your product and your
professor190 [17]

When researching your prospective business you should focus on your product and target customers.

6 0
3 years ago
The Lend-Lease Bill, introduced in Congress: Group of answer choices authorized the president to sell, transfer, lend, lease, or
tankabanditka [31]

Answer:

Authorized the president to sell, transfer, lend, lease, or otherwise dispose of other equipment and supplies to any country whose defense the President deems vital to the defense of the United States.

Explanation:

Lend-Lease Act

This bill was said to come into existence on 11th of March, 1941. The Congress passed the Lend-Lease Act. The legislation gave the President at that time, President Franklin D. Roosevelt the right, powers to sell, transfer, exchange, lend equipment to any country to help it defend itself against the other powers.

It was said that with the Lend-Lease bill stated that country of any kind whose defense the President thinks is very important to the defense of the United States will be given or can be able to receive military equipment, supplies, and other necessary materials even if that country is unable to generate funds to pay for those items.

6 0
2 years ago
Profits of a large corporation are taxed twice, once as corporate income and again as personal income of stockholders.
Alex Ar [27]
True, profits of a large corporation are taxed twice, once a corporate income and again as personal income of stockholders. This is because the corporation is taxed when they earn the profit but then the stockholders are taxed as it is paid out as income/earnings. 
6 0
2 years ago
Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10-year useful life. The new equipmen
Rom4ik [11]

Answer:

6.1 y

Explanation:

Diamond Company

New equipment÷(Annual net income +Depreciation expense)

New equipment$1,400,000

Annual net income $90,000

Depreciation expense $140,000

$1,400,000 ÷ ($90,000 + $140,000)

=$1,400,000÷$230,000

= 6.1 y

Therefore the cash payback period will be 6.1 years

5 0
3 years ago
Other questions:
  • Harold runs a business that manufactures electrical equipment. Recently, he organized a press conference to promote the eco-frie
    12·1 answer
  • An agent is discussing an equity index annuity purchase with a client. The agent explains that there are several which she feels
    13·1 answer
  • An agent sells his client 10 U.S. government bonds due to mature in 30 years. According to NASAA's Statement of Policy on Unethi
    8·1 answer
  • Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 5%, $10 par non-cum
    13·1 answer
  • you are the manager of a hamburger joint with a marginal cost of $6.00 per hamburger. The hamburger joint is a local monopoly ne
    14·1 answer
  • When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely,
    6·1 answer
  • About how many federal law enforcement offices ate employed in the United States
    5·2 answers
  • Which are the two best examples of long-term needs that people need to save for?
    7·1 answer
  • A company paid its annual dividends of $5.39 per share last week. The company expects to grow its dividends at the rate of 5.0 p
    6·1 answer
  • What information must be contained in the dispatch release for a domestic air carrier flight?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!