Gems Inc. has the following account balances (in thousands): 2020 1,000 (330) 450 (130) 2019 Buildings Accum. dep-buildings Machinery Accum, dep-machinery The following occurred in 2020: There was a building addition for $280 thousand. Machinery was purchased for $90 thousand. Equipment with an original cost of $20 thousand and related accumulated depreciation of $10 thousand was sold or $15 thousand cash. What is the change in non-cash working capital as a result of these transactions changes? Write the word "increase" or "decrease" 720 (220) 380 (100) A/ What is the amount (no dollar sign, round to whole

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Sh61

Gems Inc. has the following account balances (in thousands):
Buildings
Accum. dep-buildings
Machinery
Accum, dep-machinery
2020
1,000
(330)
450
(130)
2019
720
(220)
380
(100)
The following occurred in 2020:
1.There was a building addition for $280 thousand.
2. Machinery was purchased for $90 thousand.
3. Equipment with an original cost of $20 thousand and related accumulated depreciation of $10 thousand was sold
for $15 thousand cash.
What is the change in non-cash working capital as a result of these transactions changes?
Write the word "increase" or "decrease"
number, use a comma where needed)?
A/
What is the amount (no dollar sign, round to whole
A/
Transcribed Image Text:Gems Inc. has the following account balances (in thousands): Buildings Accum. dep-buildings Machinery Accum, dep-machinery 2020 1,000 (330) 450 (130) 2019 720 (220) 380 (100) The following occurred in 2020: 1.There was a building addition for $280 thousand. 2. Machinery was purchased for $90 thousand. 3. Equipment with an original cost of $20 thousand and related accumulated depreciation of $10 thousand was sold for $15 thousand cash. What is the change in non-cash working capital as a result of these transactions changes? Write the word "increase" or "decrease" number, use a comma where needed)? A/ What is the amount (no dollar sign, round to whole A/
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education