Determine the cash flow from the sale of property

Assignment Help Financial Accounting
Reference no: EM132718100

Computing and Reporting Cash Flow Effects of Sales of Plant and Equipment During two recent years, Perez Construction Inc., disposed of the following plant and equipment:

                                                                                                                 Year 1                     Year 2
Plant and equipment (at cost)                                                   $75,000             $13,500
Accumulated depreciation on equipment disposed of                       $40,385              $3,773
Cash received                                                                           $17,864            $12,163
Gain (loss)                                                                              $(16,751)            $2,436

Required:

Problem 1. Determine the cash flow from the sale of property for each year that would be reported in the investing activities section of cash flow statement.

Problem 2. Perez uses the indirect method for the operating activities section of the cash flow statement. What amounts related to the sales would be added or subtracted in the computation of Net Cash Flows from Operating Activities for each year?

Reference no: EM132718100

Questions Cloud

What are the grounds for immediate rescission : What does pactum commisorium mean? How would this affect the sale of immovable property and movable property? Explain broadly.
Describe a specific theory and an intervention : Describe a specific theory and an intervention - State what interventions you used and why, which theory each intervention is associated with
Prepare the journal entries for all of these transactions : Prepare the journal entries for all of these transactions, including the write-off of the uncollectible account and the adjusting entry for estimated bad debts
Preparing organization against terrorist attacks : Using a Web browser, search for information related to preparing an organization against terrorist attacks
Determine the cash flow from the sale of property : Determine the cash flow from the sale of property for each year that would be reported in the investing activities section of cash flow statement
Influence the selection of access control software : What are the factors that influence the selection of access control software and/ or hardware? Discuss all aspects of access control systems.
What adjustment will you need to make : If you start with E&P of $400,000, what adjustment will you need to make for the premium for purposes of calculating taxable income
Which one assertion would vouching be least likely : Vouching transactions and balances back to supporting documentation would ordinarily provide evidence about which assertions? Which one assertion.
Solve expected return for miami marlins outfielder next year : How do Solve the expected return for a Miami Marlins outfielder next year if there is a 20% chance he hits 25 HR, a 30% chance he hits 30 HR

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare journal entries for transactions for collin raye co

Prepare the journal entries for these transactions. Assuming that the common stock is no par with a stated value of $3 per share.

  How the deferred income taxes should be reported

Show how the deferred income taxes should be reported on the Balance Sheet at December 31, 2020. How the taxes should be reported on the Income Statement

  Manufactures cycling equipment

George Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request,..

  Determine dollar sales volume required to earn target profit

McKee Corporation has annual fixed costs of $12 million. Its variable cost ratio ( VC/P ) is .70. Determine the company’s break-even dollar sales volume. Determine the dollar sales volume required to earn a target profit of $8 million.

  Determine the number of weighted encounters

Determine the number of projected encounters using the 70% occupancy factor. Determine the number of weighted encounters under the assumption

  How many hats must ford sell each quarter to break even

Ford Tops manufactures hats for baseball teams. Ford has fixed costs of $89,700 per quarter and sells each hat for $46. If the variable cost per hat is $41.40, how many hats must Ford sell each quarter to break even?

  Treasury stock transactions occurred

On January 1, 2017, the stockholders’ equity section of Newlin Corporation shows common stock ($4 par value) $1,200,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,150,000. During the year, the following treasury stock tran..

  Examples of each of three main types of business processes

Give three examples of each of the three main types of business processes. Tom owns a small recreational trailer business in a suburban community located close to the mountains. The community is relatively small but growing at a fast rate. Tom's busi..

  What is the yield to maturity on bond

a. What is the yield to maturity on this? bond? b. Should you purchase the bond if the yield to maturity on a? comparable-risk bond is 10 percent?

  Units of steel are expected in raw materials inventory

Little Red Company manufactures wooden wagons. To manufacture a wagon, it takes 20 units of wood and 1 unit of steel. Scheduled production of wagons for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 8,000 units of..

  Prepare journal entry and the annual adjusting entry

ssume that on February 1, Procter & Gamble paid $747,000 in advance for 1 years' insurance coverage. -Prepare P&G's February 1 journal entry.

  Make the appropriate general journal entry to recognise

Make the appropriate general journal entry to recognise the contribution of buildings to the joint operation by Voss Ltd and the proportional interest

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd