Answer:
B. $100,000 subtraction from net income $400,000 cash inflow
Explanation:
The income statment will include a loss on disposal.
The book value is 500,000 and was sold at 400,000
The loss on disposal will be 100,000
For the cash flow statement will recognize the cash proceeds from investment activities. It will ignore the loss on disposal. Cash generated on disposal of equipment will be 400,000
A.- INCORRECT the net income decrease, as it was a loss, not a gain.
C.- INCORRECT the net income decrease, as it was a loss, not a gain.
D.- INCORRECT the cash flow will recognize the amount of cash received. Which is 400,000 not 500,000.
Are the sum of a company's profits, after dividendpayments, since the company's inception. They are also called earned surplus, retained capital, or accumulated earnings.
(EXAMPLE):
Let's assume Company XYZ has been around for five years. During this time, it reported the following net income:
Year 1: $10,000
Year 2: $5,000
Year 3: -$5,000
Year 4: $1,000
Year 5: -$3,000
Assuming Company XYZ paid no dividends during this time, XYZ's retained earnings equal the sum of its net profits since inception, or in this case, $8,000. In subsequent years, XYZ's retained earnings will change by the amount of each year's net income, less dividends.
The retained earnings statement summarizes changes in retained earnings for a fiscal period, and total retained earnings appear in the shareholders' equity portion of thebalance sheet. This means that every dollar of retained earnings means another dollar of shareholders' equity ornet worth.
A company's board of directors may apprompany's retained earnings when it want to restrict dividend distributions to shareholders. Appropriations are usually done at the board's discretion, although bondholders and other circumstances may contractually require the board to do so. Appropriations appear as a special account in the retained earnings section. When an appropriation is no longer needed, it is transferred back to retained earnings. Because retained earnings are not cash, a company mayfund appropriations by setting aside cash or marketable securities for the projects indicated in the appropriation.
Why its important
It is important to understand that retained earnings do not represent surplus cash or cash left over after the payment of dividends. Rather, retained earnings demonstrate what a company did with its profits.
Answer:
a. harmony will produce chicken and singsong will catch fish.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
In singsong: 1f = 2c
The opportunity cost of producing 1 fish = 2c / 1 = 2c
The opportunity cost of producing 1 chicken = 1f / 2 = 0.5f
In harmony: 1f = 4c
The opportunity cost of producing 1 fish = 4c / 1 = 4c
The opportunity cost of producing 1 chicken = 1f / 4 = 0.25f
It can be seen that singsong has a lower opportunity cost in producing fish, so it should specialise in fish.
Harmony has a comparative advantage in producing chicken, so it should specialise in chicken.
I hope my answer helps you
Answer:
According to the straight-line depreciation, this number can be obtained by dividing the difference between an asset's cost and its expected salvage value.
<u>Depreciation</u> = Asset's Cost - Expected Salvage Value ÷ Expected Years of use
Explanation:
In the case of Tops Co., they purchase equipment for $12,000 - $500 of Salvage Value expected ÷ 5 Expected years of use
The estimated depreciation will be $2,300 for 5 years
At the beginning of the third year Tops Co. decided to use the equipment for 6 years and no salvage value.
The remaining purchase value will be $12,000 - $2,300 (x3) = $5,100
Apply again the formula described above and our answer will be:
The revised estimated depreciation is $1,700 for the remaining three years.
