A corporation uses the indirect method for preparing the Statement of Cash Flows. A fixed asset...
A corporation uses the indirect method for preparing the Statement of Cash Flows. A fixed asset has been sold for $25,000 representing a gain of $4,500. The value in the operating activities section regarding this event would be:
a. $25,000
b. ($4,500)
c. $4,500
d. $29,500
Homework Answers
The correct option is B.
The gain on sale of fixed assets would be deducted from the net income to arrive at the cash flow from operating activities as it is an increase in net income for the period.Any non cash expenses such as depreciation is added back while non cash revenues deducted to compute net cash flow from operating activities.
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A corporation uses the indirect method for preparing the Statement of Cash Flows. A fixed asset...
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A corporatian uses the indirect method for preparing the statement af cash BaRS A faad assat hes been sald for $26,336 epresenting a gain of $3,220. The value in the operating activities section regarding this event would be a $3,710 b. $22,626 e $30,046 d. $26,336
Mimos Woodworking Company is preparing its statement of cash flows using the indirect method. During the year, Thomas Woodworking sold equipment for $6490 cash. The net book value of the asset was $4770. Which of the Following statements is true! The gain on sale of $1,720 is shown as a positive cash flow in the financing activities section The cash receipt of $6.490 is shown as a positive cash flow in the investing activities section. The book value of the...
please help i am confused
11. Which of the following should be added to net income in calculating net cash flow from operating active using the indirect method? a depreciation expense b. an increase in inventory c a gain on the sale of equipment d dividends declared and paid 12. The following information is available from the current period financial statements Net income Depreciation expense Increase in accounts receivable Decrease in accounts payable $165,000 28.000 16,000 21,000 The net cash...
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