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
To find simple interest:
Time = Interest/(Principle)(Rate)
Interest is the amount of interest paid
Principle is the amount you lent or borrow
Rate is the percentage of principle charged as interest each year
Time is the years of the loan
P=Principle amount of $1,500
I=Interest amount of $1,200 (Take the new amount of $2,700 and subtract from the principle that is $1,500 which gives you $1,200)
r= as a decimal .15 (15%/100)
t=unknown
T=I/PR
T=1,200/(1,500)(.15)
T=1,200/225
T=5.3 years
It would take Lance roughly 5.3 years
It gives you more ideas to make the final product better than what it original product
D) a work-study work program
Answer:
d. leverage
Explanation:
Leverage -
It is a type of investment strategy , where the borrowed money is used .
It is the method by which the firm or an organisation is expanded by using the borrowed money as the capital and funding , is referred to as leverage .
Hence , from the given scenario of the question,
The person uses borrowed money to increase the potential return of an investment .
Hence , from the question,
The correct term is leverage .
