Answer:
1) For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale.
- original cost = $9,800
- accumulated depreciation = $1,020
- cash received = $5,980
2) Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities?
- the loss on sale of equipment ($2,800) should be added to the cash flows from operating activities.
3) What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?
- the cash received ($5,980) should be added to the cash flow from investing activities
Explanation:
equipment cost = beginning equipment - ending equipment = $20,000 - $10,200 = $9,800
equipment's accumulated depreciation = beginning accumulated depreciation + depreciation expense - ending depreciation = $1,950 + $860 - $1,790 = $1,020
book value = $9,800 - $1,020 = $8,780
cash received = book value - loss = $8,780 - $2,800 = $5,980
Answer:
Affluenza.
Explanation:
It is a term that described to be psychological and socio-metaphorical illness seen amongst children or also in teens who grow up in a privileged lifestyle, largely isolated emotionally and developmentally from their working parents etc. In most cases according to research, it is seen to make such children feel more isolated than their friends, while at the same time feeling an increase in pressure to perform.
The effect of this affluenza is also seen to make such people to have a feeling of giving themselves excessive pressure to achieving things, these includes in both academic and extracurricular activities.
Answer:
Dividends are fixed. ⇒ Consistent with Debt
Fixed dividends makes preferred shares consistent with debt because debt repayments are made in equal payments as well.
Usually has no specified maturity date ⇒ Consistent with Equity.
Equity has no set maturity date unlike debt and preferred stock has no maturity date either so is much like equity in this regard.
Cost of preferred stock.
Preferred stock is like a perpetuity. The cost of preferred stock is therefore:
= Constant dividend / Price of stock
= 13 / 130.45
= 9.97%
= 10%
