Task 4: XYZ corporation had net cash flows from operating activities of $90.000 in last year. During the year, XYZ cost $60.000 for property, plant and equipment; sold them for $12.000; paid dividends of $40.000. a) You should calculate the company's free cash flow and explain the result. b) On January 2021, XYZ purchased a truck for $ 70.000. The Chief accountant supposed that the truck will last six years for 200.000 miles, with an estimated residual value $ 22.000 at the end of that time. Compute the depreciable cost for the year 2021 under the straight-line method. c) You should prepare the journal entry for the depreciation of the truck in 2021

Task 4: XYZ corporation had net cash flows from operating activities of $90.000 in last year. During the year, XYZ cost $60.000 for property, plant and equipment; sold them for $12.000; paid dividends of $40.000. a) You should calculate the company's free cash flow and explain the result. b) On January 2021, XYZ purchased a truck for $ 70.000. The Chief accountant supposed that the truck will last six years for 200.000 miles, with an estimated residual value $ 22.000 at the end of that time. Compute the depreciable cost for the year 2021 under the straight-line method. c) You should prepare the journal entry for the depreciation of the truck in 2021

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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