Mays Company sold a machine for $10,000 cash. The machine originally cost $65,000 and the company had recognized $53,000 in depreciation over the life of the machine. What is the effect of this sale on Mays Company's income statement and its statement of cash flows?
Answer: $2,000 loss on the income statement; $10,000 cash inflow from investing activities
You might also like to view...
Identify the channel function that constitutes both backward and forward flow
A) obtaining funds for financing B) storage of physical goods C) persuasive communication D) movement of physical goods E) overseeing actual transfer of ownership
A firewall is a hardware partition designed to protect networks from power surges
Indicate whether the statement is true or false
The percentage of earnings retained is computed by dividing retained earnings by total stockholders' equity
Indicate whether the statement is true or false
Which of the following sentences best expresses the receiver's point of view?
a. I want to take this opportunity to offer my congratulations on your recent promotion. b. A promotion is always great news. c. Congratulations on your recent promotion to regional manager. d. I hear that congratulations are in order!