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
It would be $125,000 + $10,000=$135,000 the insurance company would need to pay
Answer:
$9340
Explanation:
The amount of cash received from customers to be shown under operating activities is computed using the below formula:
Cash from customers=credit sales+decrease in accounts receivable-uncollectible accounts expense
credit sales=$9,120
decrease in accounts receivable=$2,720-$1,760=$960
uncollectible accounts expense=$740
cash received from customers=$9,120+$960-$740
cash received from customers=$9340
Answer:
a) Net Income = 68200
b) Tingler net income= 8645
Shocker net income=29655
Total net income=38300
c) No, because net income would decrease from 68200 to 38300.
Explanation:
Find the attachment for explanation/solution.
