A loss on the sale of machinery in the ordinary course of business should be presented...
A loss on the sale of machinery in the ordinary course of business should be presented in the cash flow statement as:
Group of answer choices
a deduction from net income when using the indirect method.
an addition to net income when using the indirect method.
cash flow from investing activities when using the direct method.
Homework Answers
Correct answer-----------cash flow from investing activities when using the direct method.
.
The sale of a long term asset is disclosed in investing section of cash flow with the amount of cash received on sale. Any gain or loss on sale is adjusted with net income in Indirect method.
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A loss on the sale of machinery in the ordinary course of
business should be presented...
3. An analysis of the machinery accounts of Noller Company for 2015 is as follows: ...
3. An analysis of the machinery accounts of Noller Company for 2015 is as follows: Machinery, Net of Accumulated Accumulated Machinery Depreciation Depreciation Balance at January 1, 2015 $500,000 $125,000 $375,000 Purchases of new machinery in 2015 for cash 200,000 — 200,000 Depreciation in 2015 — 100,000 (100,000) Balance at Dec. 31, 2015 $700,000 $225,000 $475,000 The information concerning Noller's machinery accounts should be shown in Noller's statement of cash flows (indirect method) for the year ended December 31, 2015,...
7. Which of the following would be classified as a financing activity on a statement of...
7. Which of the following would be classified as a financing activity on a statement of cash flows? A) B) Payment of a bond payable Sale of a loan receivable C) Payment of interest to a creditor D) Declaration and distribution of a stock dividend 8. The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n) A) addition to net income. deduction from net...
47. Land costing $125,000 was sold for $355,000 cash. The gain on the sale was reported...
47. Land costing $125,000 was sold for $355,000 cash. The gain on the sale was reported on the income statemen other income. On the statement of cash flows, what amount should be reported as an investing activity from sale of land? A) $155,000 B) $355,000. C) $310,000. D) $230,000 48. In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n) A) subtraction from net income. B) addition to...
19. When preparing a statement of cash preparing a statement of cash loan (indirect methodl, which...
19. When preparing a statement of cash preparing a statement of cash loan (indirect methodl, which of the following is Hot an adjustm adjustment to reconcile net income to be cash vided by operating activities A) A change in income taxes payable B) A change in interest payable C) A change in dividends payable D) All of these are adjustments 20. When using the indirect method to prepare the operating section of a statement of cash llows, which of the...
Business Course PRUITT COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $770,000...
Business Course PRUITT COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $770,000 Cost of Goods Sold $450,000 Wages and Other Operating Expenses 195,000 Depreciation Expense 22,000 Goodwill Amortization Expense 7,000 Interest Expense 5,000 Income Tax Expense 36,000 Loss on Bond Retirement 5,000 720,000 Net Income $50,000 Support We were unable to transcribe this imageBusiness Course $480,000 $489,000 Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Income Tax Payable Bonds Payable Common Stock Retained Earnings...
i need help finding question 3. but it will be helpfull too if you can help...
i need help finding question 3. but it will be helpfull too if you can help with all 3. 3) In preparing its cash flow statements for the year ended December 31, year 7, a company collected the following data: Proceeds from the sale of the company’s own stock $30,000 Payment to acquire shares of another company’s common stock 2,400 Dividends paid to the company’s own shareholders 15,200 ...
A building with a book value of $42,837 is sold for $55,601 cash. Using the indirect...
A building with a book value of $42,837 is sold for $55,601 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of a.$42,837 from investing activities b.$42,837 from investing activities and an addition to net income of $12,764 c.$55,601 from investing activities and a deduction from net income of $12,764 d.$55,601 from investing activities The following information is available from the current period financial statements: Net income $137,143 Depreciation expense...
A building with a book value of $43,220 is sold for $56,225 cash. Using the indirect...
A building with a book value of $43,220 is sold for $56,225 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows: a. an increase of $43,220 from investing activities and an addition to net income of $13,005 b. an increase of $56,225 from investing activities c. an increase of $43,220 from investing activities d. an increase of $56,225 from investing activities and a deduction from net income of $13,005
In a statement of cash flows in which the operating activities section is prepared under the...
In a statement of cash flows in which the operating activities section is prepared under the indirect method, a gain on the sale of an investment in debt securities classified as available‐for‐sale should be presented as a(n) 1) Deduction from net income. 2) Addition to net income. 3) Inflow and outflow of cash. 4) Outflow of cash.
A building with a book value of $38,124 is sold for $60,781 cash. Using the indirect...
A building with a book value of $38,124 is sold for $60,781 cash. Using the indirect method, choose how this transaction should be shown on the statement of cash flows. Select the correct answer. an increase of $38,124 from investing activities and an addition to net income of $22,657 an increase of $38,124 from investing activities an increase of $60,781 from investing activities and a deduction from net income of $22,657 an increase of $60,781 from investing activities ОО
7. Which of the following would be classified as a financing activity on a statement of cash flows? A) B) Payment of a bond payable Sale of a loan receivable C) Payment of interest to a creditor D) Declaration and distribution of a stock dividend 8. The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n) A) addition to net income. deduction from net...
47. Land costing $125,000 was sold for $355,000 cash. The gain on the sale was reported on the income statemen other income. On the statement of cash flows, what amount should be reported as an investing activity from sale of land? A) $155,000 B) $355,000. C) $310,000. D) $230,000 48. In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n) A) subtraction from net income. B) addition to...
19. When preparing a statement of cash preparing a statement of cash loan (indirect methodl, which of the following is Hot an adjustm adjustment to reconcile net income to be cash vided by operating activities A) A change in income taxes payable B) A change in interest payable C) A change in dividends payable D) All of these are adjustments 20. When using the indirect method to prepare the operating section of a statement of cash llows, which of the...
Business Course PRUITT COMPANY Income Statement For the Year Ended December 31, 2019 Sales Revenue $770,000 Cost of Goods Sold $450,000 Wages and Other Operating Expenses 195,000 Depreciation Expense 22,000 Goodwill Amortization Expense 7,000 Interest Expense 5,000 Income Tax Expense 36,000 Loss on Bond Retirement 5,000 720,000 Net Income $50,000 Support We were unable to transcribe this imageBusiness Course $480,000 $489,000 Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Income Tax Payable Bonds Payable Common Stock Retained Earnings...
A building with a book value of $38,124 is sold for $60,781 cash. Using the indirect method, choose how this transaction should be shown on the statement of cash flows. Select the correct answer. an increase of $38,124 from investing activities and an addition to net income of $22,657 an increase of $38,124 from investing activities an increase of $60,781 from investing activities and a deduction from net income of $22,657 an increase of $60,781 from investing activities ОО
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