Reference no: EM132489320
Equipment which cost $435000 and had accumulated depreciation of $241000 was sold for $220000. This transaction should be shown on the statement of cash flows (indirect method) as a(n)
- addition to net income of $26000 and a $194000 cash inflow from financing activities.
- addition to net income of $26000 and a $220000 cash inflow from financing activities.
- deduction from net income of $26000 and a $194000 cash inflow from investing activities.
- deduction from net income of $26000 and a $220000 cash inflow from investing activities.
Information for Bonita Industries is given below:
Bonita Industries
Balance Sheet
December 31, 2018
Assets Equities
Cash $ 320000 Accounts payable$ 629000
Accounts receivable (net) 1959000 Income taxes payable 193000
Inventories 2430000 Miscellaneous accrued payables 225000
Plant and equipment ,Bonds payable (8%, due 2020)1900000
net of depreciation 1980000 Preferred stock ($100 par, 6%
Patents 265000 cumulative nonparticipating)747000
Other intangible assets74200 Common stock (no par, 60,000
Total Assets$7028200 shares authorized, issued an outstanding 112700
Retained earnings2429200
Treasury stock-1500 shares of preferred(222000)
Total Equities$7028200
Bonita Industries
Income Statement
Year Ended December 31, 2018
Net sales $9100000
Cost of goods sold 6100000
Gross profit 3000000
Operating expenses (including bond interest expense) 1600000
Income before income taxes 1400000
Income tax 430000
Net income $ 970000
Additional information:
There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2018, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2018. Assume that preferred dividends for the current year have not been declared.
Question 1: The number of times interest was earned during 2018 was
1400 ÷ 152.
1349 ÷ 152.
1552 ÷ 152.
970 ÷ 152.
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: What The number of times interest was earned during 2018 was. Equipment which cost $435000 and had accumulated depreciation of $241000
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