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slavikrds [6]
3 years ago
14

On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flo

ws:
The reporting statement of fixed asset account is shown. The transactions are listed as follows:

Date Item Debit Credit Debit Credit
Jan. 1 Balance 885,000
Mar. 12 Purchased for cash 274,000 1,159,000
Oct. 4 Sold fo $151,000 129,000 1,030,000

Item Section of Statement of Cash Flows Added or Deducted Amount
Mar. 12: Purchase of fixed asset $
Oct. 4: Sale of fixed asset $
Gain on sale of fixed asset (assume the indirect method) $
Business
1 answer:
Brums [2.3K]3 years ago
7 0

Answer and Explanation:

The computation of the purchase of fixed assets is shown below:-

March 12 Purchase of  fixed assets = $274,000. This same is shown in the investing activities section of the cash flow statement in the negative sign

October 4 Sale of fixed assets = $151,000. This same is shown in the investing activities section of the cash flow statement in the positive sign

Gain on sale of the fixed asset is

= Sales Value - Cost of asset

= $151,000 - $129,000

= $22,000

This amount is shown in the operating activities section of the cash flow statement in the negative sign

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If the government removes a tax on sellers of a good and imposes the same tax on buyers of the good, then the price paid by buye
svetoff [14.1K]

Answer:

D) not change and the price received by sellers will not change

Explanation:

If the government removes a tax on sellers of a good and imposes the same tax on buyers of the good, the net amount sellers receive doesn't change. The quantity of goods that are sold also remains the same.

So, price paid by buyers will not change and the price received by sellers will also not change

4 0
3 years ago
Vilas Company is considering a capital investment of $190,900 in additional production facilities. The new machinery is expected
makvit [3.9K]

Answer:

See below.

Explanation:

For payback period we use,

Payback = Initial outlay / Annual cash flow

Payback = 190,900/49,900 = 3.82 years

Annual rate of return is calculated as follows,

Annual rate of return = Average profit / Initial outlay *100%

Annual Rate of return = 11600/190,900) *100% = 6.08%

To calculate the NPV we discount the cash flows.

12% annuity factor for 5 years = 3.6048

PV of cash flows = 49,900*3.6048 = $179,879.52

NPV = 179879.52 - 190,900 = -$11,020.48  (negative)

Hope that helps.

4 0
3 years ago
27. When a person buys stock in a company, that person is buying ________, but when a person buys a bond in a company, that pers
Trava [24]

Answer: Ownership rights

lending

Explanation: Equity shares or common stocks are the ownership rights of the company, the holders of common stock have the voting right in every major decision of the company and are entitled for dividend according to the profit made by the company in that period.

On the other hand the bondholders are the creditors of the company as bond is considered as a debt obligation in the company. They are entitled to fixed rate of interest in return of the investment made by them.

5 0
3 years ago
Under which market structure does the action of one firm have a spillover effect on the decisions of other firms?
irina [24]

I believe the answer is: Monopoly

In monopoly, the power to determine the price of a certain type of product fall to the hands of a single company. Which means, every single actions that made by this company would force other firms to conform since they do not possess enough resources to challenge this controlling company.

5 0
3 years ago
The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate
ankoles [38]

Answer:

The payback period is more than 5 years

Explanation:

Net present value is the Net value of all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.

Year  Cash flow    PV factor   Present Value

0       ($490,000)       1              ($490,000)

1         $40,000       0.909         $36,360

2        $10,000        0.826         $8,260

3        $120,000      0.751          $90,120

4        $90,000       0.683         $61,470

5        $180,000      0.621        <u> $111,780 </u>

Net Present Value                   ($182,010)

NPV of this Investment is negative so, it is not acceptable.  

Payback period

Total Net cash inflow of the investment is $440,000 and Initial investment is $490,000. This investment will take more than 5 years to payback the initial investment.

6 0
3 years ago
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