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attashe74 [19]
2 years ago
13

Last year Ace charged $1,469,867 Depreciation on the Income Statement of Andrews. If early this year Ace purchased a new depreci

able asset, the effect on Andrews's financial statements would be (all other items remaining equal):
Business
1 answer:
Maslowich2 years ago
8 0

Answer:

Increase Net Cash from operations

Explanation:

Note that the purchase of another depreciable asset means that annual depreciation expense would increase( increase on the old asset which is $1,469,867 plus the depreciation on newly acquired asset), hence, assuming that net income remains the same as last year(the meaning of all other items remaining equal), when the amount of increased depreciation is added back to the net income in the cash flow statement, the amount of net cash flow from operations would increase compared to last year.

In essence, the correct option in this case is that there would be an increase in net cash from operations not just an increase in amount of asset in the balance sheet

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The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess
OlgaM077 [116]

Answer:

Explanation:

1.Total Debt = Total Assets – Total Equity  = 2,700,000 – 1,550,000

= $1,150,000

2.Total assets = Total liabilities +Total equity = $2,700,000

3.Current Assets = Total Assets – Plant and Equipment  = 2,700,000-2,300,000  = 400,000

4.Current Liabilities = Total Liabilities – Long term debt = 1,150,000 – 748,000  = $402000

5.Accounts payables and accruals = current liabilities – notes payables

= 402000  – 150,000  = $252000

6.Working capital = Current Assets – Current Liabilities  = 400,000-402,000

= -2000

7.Net operating working capital = Current assets – Accounts payables and accruals  = 400,000 – 252,000  = 148,000

8.Difference = -2,000-148,000 = -150,000  (indicates note payable)

Recalculation with new information:

1.Total Debt = Total Assets – Total Equity  = 4,000,000 – 2,000,000 -500,000 =  

= $1,500,000

2.Total assets = Total liabilities +Total equity = $4,000,000

3.Current Assets = Total Assets – Plant and Equipment  = 4,000,000-3,000,000  = $1,000,000

4.Current Liabilities = Total Liabilities – Long term debt = 1,500,000 – 950,000  = $550000

5.Accounts payables and accruals = current liabilities – notes payables

= 550,000  – 150,000  = $400,000

7 0
3 years ago
Which of the following is not true of generally accepted accounting principles?
andrey2020 [161]

Answer:

(A) GAAP does not have substantial authoritative support.

Explanation:

Choices B to C are true about GAAP.

Now, Choice A is not true since  GAAP also includes detailed procedures and practices that provide a <u>standard</u> and not only broad guidelines of general application and this will imply that GAAP has a <u>substantial authoritative support.</u>

<u></u>

Also it is called "Generally Accepted Accounting Principles" for this reason.

8 0
3 years ago
What type of renewable source for electricity generation is predicted to increase the most in future years? (According to the re
mojhsa [17]

Answer:

solar

Explanation:

The future in energy generation is the solar energy. The solar energy is the heat and light energy that is obtain from the sun energy. It is the renewable energy an done of the cleanest source of energy. The industry experts predicts that United States will double the installation of solar cells to four million by the year 2023 in order to harvest these solar power. The solar photovoltaic cells convert sunlight into electricity. By 2024, the renewable electricity is predicted to increase by 1 200 GW.

5 0
3 years ago
Ben and Leah are planning their 30-year wedding anniversary and are considering taking a 4-day trip to Alaska. How much will the
EastWind [94]

Answer:

D) $2,622

Explanation:

Daily costs

= ($8/meal x 3 meals/day x 2 people) + $45 + $190 + $25) = $308 daily costs

Total costs

= ($400 x 2) + 90 + 500 + (308 x 4 days)

Hence:

Total costs = 800 + 90 + 500 + 1,232

= $2,622

4 0
3 years ago
Read 2 more answers
1. Which is not a factor of production? (25pts)A. Natural Resources B. LaborC. PartnersD. Entrepreneurships
postnew [5]

Answer:

i think it would be C.

partners

Explanation:

4 0
3 years ago
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