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DENIUS [597]
3 years ago
10

Ace Industries prepares its statement of cash flows using the direct method. Ace sold equipment with a book value of $6,400.00 a

t a loss of $800.00. The amount to be reported on the statement of cash flows under operating activities is A. $0.00. B. $800.00.
Business
1 answer:
jarptica [38.1K]3 years ago
8 0

Answer:

Option B,$800 is correct

Explanation:

The operating activities need to be adjusted for loss made on sale of equipment which is not a cash flow in actual sense by adding back the loss to the net income and showing the cash received from the disposal as an inflow under investing activities.

As a result ,the correct option is B,$800,which should be added back to net income in order to show the impact of non-cash items in the statement of cash flows  Ace industries

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It is always based on how long you have been with the company, and can also be based on performance!
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Read 2 more answers
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5 0
3 years ago
A company is in its first month of operations. On January 15, the company receives $600 from customers who will receive 10 voice
Yuri [45]

Explanation:

The adjusting journal entries are shown below:

On January 15

1. Cash A/c Dr $600                ($60 × 10 voice lessons)

    To Unearned revenue A/c $600

(Being the cash is received)

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2. Unearned revenue A/c Dr $480     ($60 × 8 voice lessons)

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8 0
3 years ago
At 100 units of output, total cost is $10,000 and variable cost is $6,000. What does average fixed cost equal at 100 units?
UNO [17]

Answer:

$40

Explanation:

Total costs are comprised of total variable costs plus total variable costs. i.e., total costs = variable cost +fixed costs

in this situation,

$10,000 = $6,000 + fixed costs

Fixed costs = $10,000 -$6000

fixed costs = $4000

Average fixed cost is the fixed cost divided by total output

=$4000/100

= $40

8 0
3 years ago
Assume there is an increase in demand in a perfectly competitive market that was initially in long-run equilibrium. Which of the
Lemur [1.5K]

Answer:

b. In the short-run profits will be lower than normal.

Explanation:

a. An increase in demand means that customer desire for that good has increase. Thus, it is fair to infer that consumers have shown that they now consider the good to be more valuable.

b. It is actually quite the opposite, in the short-run, companies will be able to raise their prices and profits will be higher than normal.

c. The opportunity related to the increase in demand could be enough to attract resources from other industries into the market.

d. Since this is a perfectly competitive market, it tends to reach equilibrium and the market supply curve will shift right.

The false statement is alternative b.

7 0
3 years ago
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