In a statement of cash flows, if used equipment is sold at a gain, the amount shown as a cash inflow from investing activities equals the carrying amount of the equipment:   Plus the gain. Plus the gain and less the amount of tax attributable to the gain. Plus both the gain and the amount of tax attributable to the gain. With no addition or subtraction.

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Q: I need to know why is "increase in prepaid rent" deducted?

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Q: a) Depreciation expenses

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Q: tion exp

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Q: How much depreciation would the company add to net income on its statement of cash flows?

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Q: Calculate the operating cash flow for Initech.

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A: Non-cash items are the ones that result in neither a cash inflow nor a cash outflow.

Q: Choose the letter of correct answer:   A loss on sale of machinery is presented in a statement of…

A: SOLUTION- LOSS ON SALE OF MACHINERY= A NON OPERATING ITEM RESULTING FROM THE SALE OF THIS LONG TERM…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is