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"
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"
Chapter1: Financial Statements And Business Decisions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Qd 206.
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/
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