Required information [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $32,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $16,900 cash. 3. Earned $21,200 in cash revenue. 4. Paid $12,000 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,100. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. f. Would the cash flow from operating activities be affected by depreciation in Year 2? Yes No
Required information [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $32,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $16,900 cash. 3. Earned $21,200 in cash revenue. 4. Paid $12,000 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,100. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. f. Would the cash flow from operating activities be affected by depreciation in Year 2? Yes No
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
The following events apply to Gulf Seafood for the Year 1 fiscal year:
1. The company started when it acquired $32,000 cash by issuing common stock.
2. Purchased a new cooktop that cost $16,900 cash.
3. Earned $21,200 in cash revenue.
4. Paid $12,000 cash for salaries expense.
5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected
useful life of five years and an estimated salvage value of $3,100. Use straight-line depreciation. The adjusting entry was
made as of December 31, Year 1.
f. Would the cash flow from operating activities be affected by depreciation in Year 2?
Yes
○ No](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a9da0e6-7c68-4414-ab34-2a6a7f03d4d5%2F630965ae-349f-44e6-a8d0-3aaa318b5604%2Fpm4ks3q_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following events apply to Gulf Seafood for the Year 1 fiscal year:
1. The company started when it acquired $32,000 cash by issuing common stock.
2. Purchased a new cooktop that cost $16,900 cash.
3. Earned $21,200 in cash revenue.
4. Paid $12,000 cash for salaries expense.
5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected
useful life of five years and an estimated salvage value of $3,100. Use straight-line depreciation. The adjusting entry was
made as of December 31, Year 1.
f. Would the cash flow from operating activities be affected by depreciation in Year 2?
Yes
○ No
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