Answer:
b. $16,700
Explanation:
The computation of the depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($98,500 - $15,000) ÷ (5 years)
= ($83,500) ÷ (5 years)
= $16,700
The original cost is computed below:
= Original cost of machinery + freight charges + cost of building a foundation and installing the machinery
= $85,000 + $3,500 + $10,000
= $98,500
In this method, the depreciation is same for all the remaining useful life
Answer:
The correct answer is B. Trend analysis.
Explanation:
The trend analysis is the method of analysis that consists in observing the behavior of the different items of the Balance Sheet and the Income Statement, to detect some significant changes that may have their origin in administrative errors.
This method allows us to know the direction and speed of the changes that have occurred in the financial situation of the company over time, so it is considered as a method of horizontal analysis.
It helps us to detect failures; but it is only an exploratory method, so it is always necessary to investigate further to find the causes of the failures. It is necessary to determine the changes suffered in the balances of the financial statement items that we are interested in analyzing. The trend analysis allows us to know the financial development of a company.
Answer:
The correct answer is letter "D": the revenue a government created by printing money.
Explanation:
<em>When the government prints more money, there will be more supply of it. A higher supply of money tends to increase general prices causing inflation. Therefore, households will have to pay more money for goods and services which implies they will be paying more taxes, benefiting the government since it will have more money to finance its projects.
</em>
The previous practice mentioned is implemented by governments that are not willing to increase the interest rate directly.
Answer: 3500
Explanation:
The company would report net cash provided by (used in) financing activities based on the following:
Cash proceeds from bank loan 9,800
Less: Cash dividends paid to stockholders 3,600
Less: Cash payment (principal) on bank loan 2,700
Cash flow on financing activity will now be:
= (9800 - 3600 - 2700)
= 9800 - 6300
= 3500
Therefore, the The company would report net cash provided by (used in) financing activities of 3500
