Answer:
Negative cash balance of $210,000.
Explanation:
Given that,
cost of equipment = $200,000
Inventory purchased = $12,500
Cash balance = $2,000
Accounts payable = $4,500
Net cash flow at time zero:
= (cost of equipment) + (Increase in working capital)
= ($200,000) + (Inventory purchased + cash balance - Accounts payable)
= ($200,000) + ($12,500 + $2,000 - $4,500)
= ($200,000) + ($10,000)
= ($210,000)
Note: Negative values are in the parenthesis.
Answer:
$600,000
Explanation:
Patent is an intangible non current asset that may be amortized over the estimated useful life.
Given that Alatorre purchased a patent from Vania Co. for $1,000,000 on January 1, 2018 and the patent had a remaining legal life of 10 years, expiring on January 1, 2028
Annual amortization expense = $1,000,000/10 = $100,000
During 2020 ( the patent would have been amortized for 2 years), the accumulated amortization
= 2 × $100,000
= $200,000
The net book value then
= $1,000,000 - $200,000
= $800,000
If the economic benefits of the patent would not last longer than 6 years from the date of acquisition, it means it has a remaining useful life of 4 year from 2020.
Amortization for 2020 = $800,000/4 = $200,000
The amount of the patent net of net of accumulated amortization, at December 31, 2020
= $800,000 - $200,000
= $600,000
Answer:
Stockholders' equity = $ 2,175,000.
Explanation:
Stockholders' equity is also the corporation's total book value. In other word, it is the amount of difference between the Corporation Asset and its liability
Stockholders' equity for Oriole company can be derived using : Common stock + Retained earnings - Treasury stock
Stockholders' equity = 1,610,000 + 782,000 - 217,000
Stockholders' equity = $ 2,175,000.
We also need to know that deferred income taxes is not a component of stockholders' equity thus it will not be considered in stockholders' equity calculation.
Correct answer is $ 21,75,000.