What will be the effect on cash flows of the sale

Assignment Help Accounting Basics
Reference no: EM133065080

Question - Suppose you sell a fixed asset for $10,000 when its book value is $2,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of the sale. What will be the after tax cash flow of this sale?

Reference no: EM133065080

Questions Cloud

Write a sales pitch of towing car and service business : Please write a sales pitch of towing car and service business. Like we need to present our business to investors to invest in our business.
Define expectation theory in three lines or less : Define expectation theory in three lines or less. What does "liquidity" refer to in the liquidity preference explanation of the yield curve
Enough first-hand knowledge on the topic : Create and design a virtual poster that would visualize how OFWs are seen through the eyes of the Filipino youth. Should the student not have enough first-hand
Employers can prevent workplace violence : Do you agree or disagree with this position? Why, or why not? Explain your rationale, and offer ways that employers can prevent workplace violence.
What will be the effect on cash flows of the sale : Question - Suppose you sell a fixed asset for $10,000 when its book value is $2,000. What will be the effect on cash flows of the sale
Thoughts on the fed interest rates policies : Please share your thoughts on the Fed's interest rates policies. What are your expectations on interest rates, unemployment, and gdp growth rate for 2022? When
Entrepreneur in the economic process : Describe the role and value of an entrepreneur in the economic process?
Occupational safety and health administration : What are the legal issues enforced by the Occupational Safety and Health Administration (OSHA) and presented in this case?
Identify a risk to the success of the company : Using Starbucks as a case study, identify a risk to the success of the company and create a scenario that depicts the risk and its potential impact on the compa

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entry to record the return

The goods were returned to Killers and Kings Clothing on July 22. The company uses a perpetual inventory system. Prepare the journal entry to record the return

  Describe lifo as an inventory method

Which of the following statements best describes the reason that prepaid expense is listed on the statement of cash flows?

  Perspective of a potential investor

Discuss the implications of gain from the perspective of a potential investor - year-end earnings announcement

  Discuss differences between gaap and ifrs

What are differences between GAAP and IFRS and your expectations of having a common set of Accounting Guidelines in the foreseeable future.

  A company expects to produce and sell 20000 units of a

a company expects to produce and sell 20000 units of a single product. management desires a 22 return on assets of

  Credit account titles are automatically indented

Wildhorse Company issued its 7%, 25-year mortgage bonds in the principal amount of $2,800,000 on January 2, 2003, at a discount

  How should they treat the losses

Juan lost $18,000 in the real estate development business and $26,000 in the real estate rental business. How should they treat the losses

  What is the effect on the financial statements of recording

What is the effect on the financial statements of recording a $15,000 repair expense as a debit to Machinery and a credit to Cash?

  What is the macaulay duration of the net equity

A large finance company has assets of 12 bil and liabilities of 9 bil. The Macaulay duration of the assets are 6.5 years. The Macaulay duration.

  How much warranty expense does the company report

Chang expects to incur warranty costs equals to 4% of dollar sales. How much warranty expense does the company report in 2011 for this copier

  What was your compound annual rate of return over the period

You invest $10,000 in August 2004. In August 2009, the investment is worth $12,000. What was your compound annual rate of return over the period

  What is the cash value of the lease

A six-year lease requires payment of $1,079.00 at the beginning of every three months. What is the cash value of the lease

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