A machine with a cost of $147,000 and accumulated depreciation of $102,000 is so

Question

A machine with a cost of $147,000 and accumulated depreciation of $102,000 is sold for $58,500 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

1. Zero. This is a financing activity.

2. $45,000.

3. Zero. This is an operating activity.

4. $58,500.

5. $13,500.

Analysis reveals that a company had a net decrease in cash of $5,800 for the current year. Net cash provided by operating activities was $19,800; net cash used in investing activities was $11,800 and net cash used in financing activities was $13,800. If the year-end cash balance is $30,000, the beginning cash balance was:

1. $49,800.

2. $24,200.

3. $16,000.

4.. $10,200.

5. $35,800.

A machine with a cost of $147,000 and accumulated depreciation of $102,000 is sold for $58,500 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Explanation / Answer

cash flows from investing activities :

       Sale of machine                                     $58,500

Option 4 correct

-------------------------------------------------------------------------------------------------

Beginning cash – Cash decrease = Ending Cash

Beginning cash-$5,800= $30,000

Beginning cash= $30,000+$5,800

                          =$35,800

Option 5 correct

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.