1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elina [12.6K]
2 years ago
11

On the basis of the following data for Garrett Co. for Years 1 and 2 ended December 31, prepare a statement of cash flows using

the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared of $18,000.
Business
1 answer:
Liono4ka [1.6K]2 years ago
4 0

Answer:

Garrett Co. cash flows from operating activities is $61,000.

Explanation:

Garrett Co.

Statement of cash flows (extract)

Net income                                                    $56,000

Add Loss on disposal of equipment                5,000

Cash flows from operating activities            $61,000

Loss on disposal of the equipment was calculated as Proceeds - net book value, that is $15,000 - $20,000.

Note that purchase of equipment belongs to investing part of the cash flows while proceed from stock issuance and dividend payment belong to financing part of the cash flows

You might be interested in
A large firm in the automotive aftermarket business wants to improve its current situation, which is characterized by excess inv
oksano4ka [1.4K]
<span>Yes,Supply chain management will be helpfull to automotive aftermarket business in this scenario.Supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption.Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage</span>
6 0
2 years ago
How Carnegie used vertical integration to reduce competition and make his business more profitable?
fomenos
Carnegie used vertical integration to reduce competition and make his business more profitable Vertical Integration was incorporated into everything from mining the ore and coal, to shipping it to the factories, and etc. With the flow from one business to another Carnegie was able to protect the profit made by keeping it all in a sort of cycle formation within the family. This prevented competitor companies from being able to cut down <span>availability on the market as well as raising prices on the stock.</span>
8 0
3 years ago
_______________ is the process of selling goods and services to individuals for their personal use?
Norma-Jean [14]
The correct answer is retailing.
Retailing is the process of selling goods and services to individuals for their personal use. You have stores, which are considered to be retailers of particular goods and services, and then you have customers who go there to buy those goods and services.
3 0
3 years ago
the country of doomsville is currently in a recession. the government of doomsville, in an effort to maintain its tax revenues i
harina [27]

Answer:

This policy would likely make Doomsville's recession worse.

Explanation:

Hope this helps, Have a great morning/night! :D

6 0
2 years ago
The determination of whether one is an independent contractor may include the following considerations except: a. How the person
Tamiku [17]

Answer:

d. The determination of the principal.

Explanation:

An independent contractor is one who is not bound by any affiliations to either a company, a country or an ideology.

He is hired to do a specific work and based on his contract, paid after, before or during the work.

The determination of the principal in no way affects his work as he isn't bound to the company as an employee and is a free agent. He is a professional who is not slack in his work and works efficiently to earn his pay

4 0
3 years ago
Read 2 more answers
Other questions:
  • You go to an all-you-can-eat buffet. if you maximize utility, the marginal utility of the last bite that you eat will be:
    8·1 answer
  • The Wheat Company has used the LIFO method for inventory valuation since the start of business 15 years ago. The current year en
    11·2 answers
  • Questions<br>why do we need to understand the idea of culture, society and<br>politics?​
    5·1 answer
  • Which of the following is a disadvantage of using the net present value method of evaluating an investment proposal? a. It consi
    5·1 answer
  • On January 1, Year 1, Willette Company sold $240,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and Decem
    10·1 answer
  • Own price increases are associated with decreases in quantity demanded, ceteris paribus. These decreases in quantity demanded ar
    11·1 answer
  • Impact on Corona virus as one of the socio-economic issues on business​
    6·1 answer
  • In January, 20XX a customer buys 100 shares of ABC stock at $50 per share and pays a $2 commission per share. The customer recei
    9·1 answer
  • WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45 million, of which $15 million w
    12·1 answer
  • lo8 - sleazy, inc. was accused of explicit colluding with several other companies because the sleazy directly negotiated pricing
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!