In calculating depreciation, residual value is ignored in all the depreciation methods. the fair value of the asset on the date of acquisition subtracted from accumulated depreciation to determine the asset's depreciable cost. an estimate of the asset's value at the end of its useful life. A bond with a face value of $96000 and a quoted price of 103.00 would have a selling price of $288000. $98880 $93204 $96000. When shares are traded on the secondary market it means that investors can purchase and sell shares from each other using a stock exchange. that the public can purchase shares directly from the company. it's the first time a corporation's shares are offered for sale to the public. that this is the same thing as an initial public offering. Dividends in arrears are dividends on cumulative preferred shares that have been declared but have not been paid. noncumulative preferred shares that have not been declared for a given period of time. cumulative preferred shares that have not been declared for a given period of time. common dividends that have been declared but have not been paid. Securities that can be purchased for strategic purposes include only equity securities to influence relationships between companies. include both equity securities and debt investments. include only debt investments. exclude both equity securities and debt investments. On June 1, 2022. Coronado Corp purchased Nash's Trading Corp.common shares for $12060 as a trading investment. Three months later, Coronado sold these shares for $13060. The entry to record the sale would include a debit to Cash of $12060. credit to Realized Gain on Trading Investments of $1000, credit to Trading Investments of $13060. credit to interest Income of $1000, In preparing a statement of cash flows, the conversion of bonds into common shares will be reported in the shareholders' equity section. notes to the financial statements. investing activities section financing activities section Which of the following statements are false when using the indirect method? A loss on the sale of equipment is added to net Income in calculating cash provided by operating activities. An increase in accounts receivable during a period is deducted from net income in calculating cash provided by operating activities. A decrease in accumulated depreciation during a period is added to net income in calculating cash provided by operating activities. An increase in accounts payable during a period is added to net income in calculating cash provided by operating activities, Asset turnover ratio is calculated as sales divided by net income. average total assets divided by sales. average total assets divided by net income. sales divided by average total assets. $2400 Accounts receivable Cost of goods sold 186900 Net income 49900 Sales 445000 Total assets 254000 Total current assets 25200 In performing a vertical analysis, the percentage for cost of goods sold is 5.7% 19.6% 42.0%. 199.1%
