The T-accounts for Equipment and the related Accumulated Depreciation for Lau Pty Ltd at the end of
Question:
The T-accounts for Equipment and the related Accumulated Depreciation for Lau Pty Ltd at the end of 2015 are shown here.
In addition, Lau Pty Ltd’s statement of profit or loss reported a gain on the sale of equipment of $4500. What amount was reported on the statement of cash flows as ‘cash flow from sale of equipment’?
Equipment 2015 Op. bal. 225 000 Acquisitions 62 400 287 400 2016 Op. bal. 254400 Disposals Clos. bal. 33 000 254 400 287 400 Accumulated Depreciation 2015 9000 Op. bal. 63 000 Depn 72 000 Disposals Clos. bal. 2016 Op. bal. 54 000 18 000 72 000 63 000
Step by Step Answer:
AANSWER To determine the cash flow from the sale of equipment we need to calculate the book value of ...View the full answer
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
Related Video
In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
Students also viewed these Business questions
-
The T accounts for Equipment and the related Accumulated Depreciation for Kimberlain Company at the end of 2010 are shown here. In addition, Kimberlain Companys income statement reported a loss on...
-
The T accounts for equipment and the related accumulated depreciation for Trevis Corporation are as follows: In addition, Trevis's income statement reported a loss on the sale of equipment of $1,500....
-
The T accounts for Equipment and the related Accumulated Depreciation for Triangle Art Company at the end of 2008 are shown here. In addition, Triangle Art Companys income statement reported a loss...
-
Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run...
-
Consider SINDY Index obtained by averaging stock prices and a synthetic index SINDY spot that replicates its performance. (1) SINDYs current level I is 10,000, and the synthetic indexs price S is...
-
The Perez Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine A costs $10 million but realizes...
-
Regulation can no longer be viewed simply in terms of command and control over companies. Discuss two alternatives to direct regulation and explain, by using the notion of an enforcement pyramid,...
-
Use the model in File C08 to solve this problem. Stendardi Industries 2015 financial statements are shown in the following table. Assume that the firm has no excess capacity in fixed assets, that the...
-
You are the financial manager of Ferry Constructions, a small construction firm. The owners are concerned about their inventory management, where up until now, ordering of raw materials has been...
-
Find f'(x) for f(x) = 2x + 3x - 1. Be sure to use f'(x) = lim BH to get credit. or f'(x) = lim A-0 f(x+h)-f(x) h f(b)-f(x) b-I
-
Condensed financial data of Takahashi Electronics Pty Ltd follow. Additional information: 1. New equipment and machinery were purchased for cash during the year. 2. Investments were sold at cost. 3....
-
Peebody Enterprises Ltds statement of profit or loss contained the condensed information below. Peebody Enterprises Ltds statement of financial position contained the following comparative data....
-
The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2015 are presented below. Additional data: 1. Net income for...
-
Nancy is a member of a defined contribution 0 pension plan. Both she and her employer contribute 5% of her salary to the plan each year; her salary is $45,000. Nancy's pension assets are valued at...
-
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work Direct materials cost per unit $ 3 7 $ 7 1 Direct labor cost per unit 1...
-
How do transformational leaders harness visionary foresight, emotional intelligence, and strategic acumen to inspire organizational change, cultivate a shared sense of purpose, and mobilize disparate...
-
What methodologies can companies employ to cultivate and fortify distinctive competencies that elude replication by rivals ?
-
1. Discount Banners pays $220,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $75,000, the building $162,500, and the...
-
Provide the proper format for recording a transaction.
-
In Exercises, find the equation of the tangent line at the given point on each curve. 2y 2 - x = 4; (16, 2)
-
Suppose that you have been asked to estimate a regression model to explain the number of people jogging a mile or more on the school track to help decide whether to build a second track to handle all...
-
Suppose that you work in the admissions office of a college that doesnt allow prospective students to apply by using the Common Application.9 How might you go about estimating the number of extra...
-
Do liberal arts colleges pay economists more than they pay other professors? To find out, we looked at a sample of 2,929 small-college faculty members and built a model of their salaries that...
-
Cobe Company has already manufactured 23,000 units of Product A at a cost of $25 per unit. The 23,000 units can be sold at this stage for $420,000. Alternatively, the units can be further processed...
-
[Language-Science Kits] The president of Kool Science, Inc., which makes educational science kits for children, calls the president of Language Fun, Inc., which makes foreign language learning...
-
What is corrections? Discuss each of the following forms of early corrections: The workhouse Transportation Hulks Explain each of the following: The Pennsylvania system The Auburn system The...
Study smarter with the SolutionInn App