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Q-25 Q-26 Q-27 Calculate the amount of cash flow from operating activities from the following information. Cash received from customers is $420,000, cash paid for wages and expenses is $230,000, depreciation of motor vehicles is $24,000, cash received from the sale of equipment is $25,000, and gain on the sale of the equipment is $23,000. a. $215,000 b. $166,000 c. $190,000 d. $191,000 A storage tank, acquired at the beginning of the fiscal year, at a cost of $240,000 has an estimated residual value of $30,000 and an estimated useful life of 25 years. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. On July 1, 2013, Waters Kennels sells equipment for $22,000. The equipment originally cost $60,000, had an estimated 5-year life, and an expected residual value of $10,000. The Accumulated Depreciation account had a balance of $35,000 on 1 January 2013, using the straight-line method. The gain or loss on disposal is: a. $3,000 gain b. $2,000 loss c. $3,000 loss d. $2,000 gain

Q-25 Q-26 Q-27 Calculate the amount of cash flow from operating activities from the following information. Cash received from customers is $420,000, cash paid for wages and expenses is $230,000, depreciation of motor vehicles is $24,000, cash received from the sale of equipment is $25,000, and gain on the sale of the equipment is $23,000. a. $215,000 b. $166,000 c. $190,000 d. $191,000 A storage tank, acquired at the beginning of the fiscal year, at a cost of $240,000 has an estimated residual value of $30,000 and an estimated useful life of 25 years. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. On July 1, 2013, Waters Kennels sells equipment for $22,000. The equipment originally cost $60,000, had an estimated 5-year life, and an expected residual value of $10,000. The Accumulated Depreciation account had a balance of $35,000 on 1 January 2013, using the straight-line method. The gain or loss on disposal is: a. $3,000 gain b. $2,000 loss c. $3,000 loss d. $2,000 gain

FINANCIAL ACCOUNTING
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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Q-25 Q-26 Q-27 Calculate the amount of cash flow from operating activities from the following information. Cash received from customers is $420,000, cash paid for wages and expenses is $230,000, depreciation of motor vehicles is $24,000, cash received from the sale of equipment is $25,000, and gain on the sale of the equipment is $23,000. a. $215,000 b. $166,000 c. $190,000 d. $191,000 A storage tank, acquired at the beginning of the fiscal year, at a cost of $240,000 has an estimated residual value of $30,000 and an estimated useful life of 25 years. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. On July 1, 2013, Waters Kennels sells equipment for $22,000. The equipment originally cost $60,000, had an estimated 5-year life, and an expected residual value of $10,000. The Accumulated Depreciation account had a balance of $35,000 on 1 January 2013, using the straight-line method. The gain or loss on disposal is: a. $3,000 gain b. $2,000 loss c. $3,000 loss d. $2,000 gain
Transcribed Image Text:Q-25 Q-26 Q-27 Calculate the amount of cash flow from operating activities from the following information. Cash received from customers is $420,000, cash paid for wages and expenses is $230,000, depreciation of motor vehicles is $24,000, cash received from the sale of equipment is $25,000, and gain on the sale of the equipment is $23,000. a. $215,000 b. $166,000 c. $190,000 d. $191,000 A storage tank, acquired at the beginning of the fiscal year, at a cost of $240,000 has an estimated residual value of $30,000 and an estimated useful life of 25 years. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. On July 1, 2013, Waters Kennels sells equipment for $22,000. The equipment originally cost $60,000, had an estimated 5-year life, and an expected residual value of $10,000. The Accumulated Depreciation account had a balance of $35,000 on 1 January 2013, using the straight-line method. The gain or loss on disposal is: a. $3,000 gain b. $2,000 loss c. $3,000 loss d. $2,000 gain
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