Answer:
1) For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale.
- original cost = $9,800
- accumulated depreciation = $1,020
- cash received = $5,980
2) Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities?
- the loss on sale of equipment ($2,800) should be added to the cash flows from operating activities.
3) What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?
- the cash received ($5,980) should be added to the cash flow from investing activities
Explanation:
equipment cost = beginning equipment - ending equipment = $20,000 - $10,200 = $9,800
equipment's accumulated depreciation = beginning accumulated depreciation + depreciation expense - ending depreciation = $1,950 + $860 - $1,790 = $1,020
book value = $9,800 - $1,020 = $8,780
cash received = book value - loss = $8,780 - $2,800 = $5,980
Answer:
$82,400
Explanation:
Cost of goods sold = beginning merchandise inventory + purchases - ending merchandise inventory.
$69,200 = $15,600 + purchases - $28,800
Purchases = $82,400
Answer: $1942.89
Explanation:
Since the car will cost $120,000 and it will be financed with a 84 month contract having a nominal rate of 9.20%, then the monthly payment will be:
= PMT(9.2%/12, 84, -120000)
This will be slotted into the Excel calculator and the answer gotten will be $1942.89
Therefore, the monthly payment will be $1942.89.
Answer:
The correct answer is: identifying the problem or opportunity.
Explanation:
Identifying the problem or opportunity is the first step in the rational decision-making process. To know which direction the firm is going to take, the main issue must be pointed out so based on the possible solutions the company can provide, the first steps can be taken towards achieving the solution.
