All categories

3 years ago

A.The loss on the cash sale of equipment was $22,125 (details in b).

Business

1 answer:

slamgirl [31]3 years ago

3 0

Answer:

Statement of cash flows for the year

Cash flow from Operating Activities

Loss on sale of equipment $22,125

Net Cash Provided by Operating Activities $22,125

Cash flow from Investing Activities

Proceeds from sale of equipment $28,625

Purchase of equipment ($64,000)

Net Cash used by investing activities ($35,375)

Cash flow from Financing Activities

Note Payable Issued $5,700

Repayment of Note Payable ($58,625)

Issue of Common Stock $84,000

Cash Dividends Paid ($53,500)

Net Cash used by Financing activities ($22,425)

Explanation:

Statement of cash flows for the year shows results of cash resulting from the following activities :

Cash flow from Operating Activities
Cash flow from Investing Activities
Cash flow from Financing Activities

You might be interested in

A company reports the following: Sales $4,560,000 Average accounts receivable (net) 380,000 Determine (a) the accounts receivabl

puteri [66]

Answer:

a. 12 times

b. 30.42 days

Explanation:

Data provided in the question

Sales = $4,560,000

Average account receivable = $380,000

So, The computation is shown below:

a. Account receivable turnover ratio is

= Sales ÷ average account receivable (net)

= $4,560,000 ÷ $380,000

= 12 times

b. Now the number of days sales in receivable is

= Total number of days in a year ÷ account receivable turnover ratio

= 365 days ÷ 12 times

= 30.42 days

4 0

3 years ago

Cullumber Company purchased a new machine on October 1, 2022, at a cost of $90,880. The company estimated that the machine has a

marin [14]

Answer:

The workings are made below;

Explanation:

Depreciation Expense for 2022 =($90,880-$,8,640)/8=$10,280*3/12=$2,570

Depreciation Expense for 2023=$10,280 ($90,880-$8,640)/8

The depreciation for 2022 is calculated on pro rata basis from the date of purchase till December 31,2022.

Where as depreciation for 2023 is charged on full year basis as the asset was used for the whole year.

8 0

3 years ago

Read 2 more answers

Pharoah Company purchased $2600000 of 8%, 5-year bonds from Sheridan, Inc. on January 1, 2021, with interest payable on July 1 a

kobusy [5.1K]

Answer:

$75,260

Explanation:

Calculation for What should Pharoah Company report as other comprehensive income and as a separate component of stockholders' equity

Using this formula

Comprehensive income/separate component of stockholders' equity=Fair value-(Sales of bonds-July 1, 2021 Amortized premiums-December 31, 2021 Amortized premiums)

Let plug in the formula

Comprehensive income/separate component of stockholders' equity=$2,780,000 - ($2,724,740 - $9,820 - $10,180)

Comprehensive income/separate component of stockholders' equity=$2,780,000-$2,704,740

Comprehensive income/separate component of stockholders' equity= $75,260

Therefore What should Pharoah Company report as other comprehensive income and as a separate component of stockholders' equity is $75,260

8 0

3 years ago

Tara earns $8.50 an hour (after taxes) at the pizza place. She is scheduled to work four hours this afternoon. However, her frie

stiks02 [169]

Answer:

5 and 2

Explanation:

5 because Tara works $8.50 per hour which she is scheduled to work for 4hours that afternoon is

8.50*4=34 and because she does not do this, it costs her $34

2 because it is stated that kayla called her to go to the movie so meaning she too is going to the movie and she will spend $9.50 so she cannot spend that same money elsewhere and $9.50 becomes her opportunity cost

4 0

3 years ago

A company reports the following: Net income $410,000 Preferred dividends $60,000 Shares of common stock outstanding 50,000 Marke

Vadim26 [7]

Answer:

Explanation:

Calculation to determine Determine the company's price-earnings ratio

First step is to calculate the Earnings per Share

on Common Stock

Earnings per Share

on Common Stock = ($410,000 – $60,000) ÷ $50,000

Earnings per Share on Common Stock = $7

Now let calculate thecompany's price-earnings ratio

Price-Earnings Ratio = $84÷$7

Price-Earnings Ratio = 12

Therefore the company's price-earnings ratio is 12

4 0

3 years ago