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likoan [24]
3 years ago
8

Additional Information: Net income for 2020 was $26,890. Land was sold for cash at a loss of $2,000. Cash dividends were paid du

ring the year. Equipment was purchased for cash. In addition, equipment costing $40,000 with a book value of $13,000 was sold for $14,000 cash. What is the cash flow from operating activities? Group of answer choices $85,290 $86,290 $108,290 $84,290
Business
1 answer:
slega [8]3 years ago
5 0

Answer:

The question is wrong ,find attached correct question:

The correct option in the attached is $58290 ,option E,which is missing in the original question

Explanation:

Cash flow from operating activities=net income+depreciation charge-increase in accounts receivable+decrease in inventory+decrease in prepaid expenses-decrease in accounts payable+loss on sale of land-gain on sale of equipment

cash flow from operating activities=$26,890+($135,000-$92,000)-($77,000-$64,000)+($140,000-$132,000)+($16,540-$12,140)-($45,000-$33,000)+$2000-$1000=$58290

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9. Mackenzie PLC is considering expanding a production line. The new equipment for the line will cost $255,000. In addition, the
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Answer:

Net Present Value = $59,632.78

Explanation:

<em>The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project. </em>

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Present value of cash inflow:

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NPV = 26882.7792  - 4819.84773 - (255,000+12250)

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