Additional information1. Operating expenses include depreciation expenseof R34 000 and amortisation of prepaid expenses of R2 000.2. Land was sold at its book value for cash.3. Cash dividend of R48 000 was paid in 2018.4. Interest expense of R8 000 was paid in cash.5. Equipment with a cost of R36 000 was purchasedfor cash. Equipment with a cost of R24 000 and a bookvalue R18 000 was sold for R16 000 for cash.6. Loans were redeemed at their book value for cash.7. Ordinary shares were for cash.RequiredUse the information provided to prepare the cash flowstatement using the direct method.

The cash flows from operating activities include the cash received and paid in the course of the…

Answered: Additional information 1. Operating…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Phelm Corporation sold a piece of equipment for cash and recognized a gain of $5,000. The original cost was $34,000 and the accumulated depreciation just prior to the sale totaled $19,000. What amount will appear in the investing activities section of the statement of cash flows? $20,000 $54,000 $10,000 $15,000
G company has an increase in its net fixed assets of $800. Depreciation = $140. How much did the company spend on net fixed assets? A source or use of cash? $800, source $800, use $940, source $940, use
a truck that originally cost 40,000 was sold for 10,000 cash. Accumulated depreciation up to the date of the sale was 36000. A 6000 gain was reported on the income statement.What if the effect on the statement of cash flow cash inflow 40000 from sale of truck investing 36000 depreciation added to cash from operating, gain ignored 4000 added to cash from operating 6000 subtracted from cash from operating 10,000 inflow from sale added to cash from investing 4000 depreciation added to cash from operating 10,000 added to cash from operating 40,000 subtracted from cash from financing 10,000 increasing cash from investing 6000 gain subtracted from cash from operating (net income)
Patterson Company’s Depreciation Expense is $20,400 and the beginning and ending Accumulated Depreciation balances are $150,200 and $155,200, respectively. What is the cash paid for depreciation?
Assume a company did not purchase any equipment during the year, but it did sell a piece of equipment that had an original cost of $500.000 and accumulated depreciation of $300,000. The gain on the sale was $23.500 Based solely on the information provided, the company's net cash provided by (used in investing activities would be Multiple Choice $200,000 $276.500 $223,500 $247000
An asset which costs $25,000 and has accumulated depreciation of $6,000 is sold for $11,000. What amount of gain or loss will be recognized when the asset is sold? a. A gain of $14,000 b. A loss of $14,000 c. A gain of $8,000 d. A loss of $8,000
A truck with an original with an original cost of $ 22,000 and book value of $5,000 was sold for $4000 cash. The loss on sale would be reflected on the cash flow statement as a $22,000 subtraction under investing activities. $1000 subtraction under investing activities. $4,000 addition under operating activities. $1,000 addition under operating activities.
Reno Company's net income of $30,000 includes a charge for depreciation expense of $20,000. Its estimated net annual cash flow would be OA) $10,000 B) $12,500 OC) $25,000 D) $50,000 E) none of the above
Current Attempt in Progress The net income for Coronado Co. for 2022 was $276,800. For 2022, depreciation on plant assets was $72,800, a company incurred a loss on disposal of plant assets of $30,400. Compute net cash provided by operating activities under the indirect method, assuming there were no other cha company's accounts. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,0 Coronado Co. Statement of Cash Flows-Indirect Method Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Gain on Disposal of Plant Assets Loss on Disposal of Plant Assets Net Cash Provided by Operating Activities +A $ +A +A $
A company sold a machine that originally cost $250,000 for $120,000 when accumulated depreciation on the machine was $100,000. The gain or loss recorded on the sale of this machine is:

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