All categories

3 years ago

A. Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000.

Business

1 answer:

Nikitich [7]3 years ago

3 0

Answer:

$221,100

Explanation:

The cash flow statements is a part of the financial statements that shows the net cash used or generated from the company's activities. These activities are the operating, investing and financing activities.

Operating activities considers the changes in current assets and liabilities. Investing involves the cash flows as a result of long term asset related activities while financing are more of long term debts and stock related activities.

Cash outflows are considered to be negative and inflows positive.

For an asset sold at a loss, the amount received must be less than the book value hence the loss

Amount received = $65,300 - $14,000

= $51,300

This company's cash flows from investing activities

= $51,300 - $89,000 + $198,000 + $60,800

= $221,100

This is the net cash generated by investing activities.

You might be interested in

Briefly explain how the government uses taxation as a redistribution method

crimeas [40]

Answer:

The purpose of this is to increase economic stability.

8 0

3 years ago

Proponents of rational expectations theory argued that, in the most extreme case, if policymakers are credibly committed to redu

White raven [17]

Answer:

The sacrifice ratio could be as small as 0

Explanation:

The Sacrifice Rate is the loss of output due to the fight against inflation, and can be expressed as how much product is lost to reduce inflation by 1 percentage point. The Sacrifice Rate is a proposition by economist Robert Lucas Jr, who noted that the slowdown in long-term inflation is associated with a reduction in the production of goods and services over a period of time until economic agents adapt to the new reality. pricing and restructuring their expectations of the economy. Therefore, the social cost of fighting inflation is a reduction in GDP and an increase in the unemployment rate.

Because of this, we can conclude that if policymakers are committed to reducing inflation and rational people understand this commitment and quickly reduce their inflation expectations, the sacrifice rate can be as low as 0.

7 0

3 years ago

A client is currently training in the Hypertrophy Phase of the OPT model. Which phase of the flexibility continuum would be the

joja [24]

Answer:

The correct answer is active.

Explanation:

Flexibility is the only physical capacity that does not evolve with age, but quite the opposite, since after two months of age the loss of this quality begins. Therefore, exercising it will be essential to avoid loss as much as possible.

Active flexibility: it is the maximum amplitude of a joint or movement that a person can reach without external help, which only happens through the voluntary contraction and distension of the muscles of the body.

8 0

3 years ago

Phillips NV produces DVD players and exports them to the United States. Last year the exchange rate was $1.25/euro and Phillips

vichka [17]

Answer: The exchange rate pass through is 41.7 = 6.666666667%÷16%

Explanation:

Currently, from last year to the current year, there has been a 16% increase change in the exchange rate and a 6.667% change in the price. The exchange rate pass through is 41.7 = 6.666666667%÷16%

For every increase in 1% of the exchange rate, there has been a 41.7% increase in the current price of the DVD player.

5 0

3 years ago

Prine Company purchased equipment on January 1, 2018, for $ 25 comma 000. Suppose Prine Company sold the equipment for $ 3 com

Marat540 [252]

Answer:

a. The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale of the equipment:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment $6,000

Credit Equipment $25,000

Explanation:

To recognize gain or loss on the sale of the equipment:

First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.

Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss

On December 31, 2019, the carrying amount of the asset = $25,000 - $16,000 = $9,000

Sale price - Carrying amount of the asset = $3,000 - $9,000 = -$6,000

=> The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale should be made:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment $6,000

Credit Equipment $25,000

4 0

3 years ago