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
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- If an asset cost £27,000 with no scrap value, and the annual depreciation charge calculated using the straight-line method is £6,750 per annum, then depreciation is being charged at the rate of(SLM depreciation rate)?See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $12 million in 2022. Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation originally was $1.5 million; however, a change in the depreciation schedule (still within GAAP) has now made the depreciation expense DOUBLE. Based on this change in depreciation expense, what would XYZ's net income now be? Select one or more: a. so b. $3,000,000 c. $1,500,000 Od. Not enough information to tellKrakow Corporation reported 2010 net income of $450,000, including the effects of depreciationexpense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 wasborrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities usingthe indirect method for 2010 was:$570,000$520,000$470.000$440,000
- Following information relate to Hawke Ltd for the financial year ended 2020 Information provided in the images. Additional information:The loss on sale of equipment relates to an item that originally cost $80 000 and had a carrying amount of $20000 when sold.Required: Calculate the following:(a) Cash collected from customers and Cash paid to suppliers (b) Cash paid to employees for wages and salary and Cash spent on plant and equipment (c) Proceeds from sale of equipment andCash paid for insuranceAdditional information (a) The entity sold some tangible non-current assets, which had a net book value of $200 million. The cost of sales figure includes a loss of $10 million on this disposal. (b) Cost of sales is arrived at after charging depreciation on the tangible non-current assets of $42 million. (c) Dividends paid during the year were $55,000. IMPORTANT: if your answer is 100,000 for this question please write 100 and IGNORE 000 while writing answer. If you write answer with 000 it will be marked as incorrect Find cashflow from OperationsOn Pina's multiple - step income statement for 2023, income from continuing operations is: Select answer from the options below a) $17395. b) $24850. c)$40400. d) $17780.
- If the company realizes at the start of 2021 that the remaining useful life of the 6-year-old building is 20 years, what should beits carrying amount at the end of the year? (Hint: The company usesthe straight-line method of depreciation.) (Round to the nearest centavos)On January 1, 2021, Bambi Ltd. purchased equipment for $728,000. The equipment was assumed to have an 8-year useful life and no residual value and was to be depreciated using the straight-line method. On January 1, 2023, Bambi's management became concernedthat the equipment may have become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $523,250, the discounted future net cash flows was $464,100, and the current fair value of the equipment less cost ofdisposal (of $1,800 ) was $455,000. c) Assuming that Bambi is a public Canadian company, identify which model should be used to test for impairment. d) Record the journal entry to record the impairment loss, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit…Plymouth Company owns equipment with a cost of $600,000 and accumulated depreciation of $375,000 that can be sold for $300,000, less a 4% sales commission. Alternatively, Plymouth Company can lease the equipment for four years for a total of $320,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Plymouth Company on the equipment would total $40,000 over the four-year lease. a. Prepare a differential analysis on August 7 as to whether Plymouth Company should lease (Alternative 1) or sell (Alternative 2) the equipment. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) August 7 LeaseEquipment(Alternative 1) SellEquipment (Alternative 2) DifferentialEffects (Alternative 2) Revenues $ $ $ Costs Profit (Loss) $ $ $ b. Should Plymouth Company lease (Alternative 1) or sell (Alternative 2) the equipment?
- 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 $Alternative A has an initial cost of $-125,000, an annual cash-flow before taxes of $60,000, and a depreciable life of 3 years. Alternative B has an initial cost of $–95,000, an annual cash-flow before taxes of $20,000, and a depreciable life of 5 years. The company considering the alternatives is in the 35% tax bracket and assumes straight line depreciation with an after-tax minimum acceptable rate of return (MARR) of 10% per year. A salvage value of zero is used when depreciation is calculated; however, system B can be sold after 5 years for an estimated 16% of its first cost. System A has no anticipated salvage value. Determine which is more economical using an annual worth (AW) analysis. The annual worth analysis for system A is determined to be $ The annual worth analysis for system B is determined to be $ System A is selected. 50,264.35 X -814.61 X4. YOU CAN DO IT Corporation has equipment with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021: · Expected net cash flows (undiscounted)- P420,000 · Expected net cash flows discounted at 7%- P400,000 · Fair value, using the assets with other assets- P415,000 · Fair value, assuming the assets are sold stand-alone- P428,000 What is the impairment loss that the Company must report in its 2021 income statement for this equipment? CHOICES: P30,000 P35,000 P22,000 P50,000