A firm's accumulated depreciation account increased $30,000 for the year and total plant assets at cost increased $200,000 . During the year, the firm purchased $350,000 of new equipment for cash, and sold equipment for $50,000 cash. This equipment had been depreciated $30,000 at the time of the sale. What is the complete disclosure of these events in the statement of cash flows prepared under
the direct method?
a. $300,000 investing cash outflow; $130,000 addition reconciling adjustment
b. $350,000 investing cash outflow; $50,000 investing cash inflow; $60,000 addition reconciling adjustment
c. $350,000 investing cash outflow; $50,000 investing cash inflow; $60,000 addition reconciling adjustment; $70,000 addition reconciling adjustment
d. $350,000 investing cash outflow; $50,000 investing cash inflow; $70,000 addition reconciling adjustment
C
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Based on the income statements shown below, which division has the cost structure with the highest operating leverage? SoftDrinksBottledWaterFruitJuicesRevenue $50,000 $50,000 $50,000 Variable costs (10,000) 5,000 (30,000) Contribution margin 40,000 45,000 20,000 Fixed costs (30,000) 40,000 (10,000) Net income $10,000 $5,000 $10,000
A. Fruit Juices. B. Bottled Water. C. Soft Drinks. D. The three divisions have identical operating leverage.
Equipment with a cost of $60,000 is sold for $5,000 . Assuming accumulated depreciation of $55,000, how much of a gain or loss is recorded on the sale of the equipment for financial reporting purposes?
a. $5,000 gain b. Need more information to calculate gain or loss. c. $0 d. $5,000 loss
Businesses recognize their duty not only to protect their physical and social environment, but also to contribute to ______.
a. the welfare of the community b. society as a whole c. the broader global community d. the protection of their people
Compare the liability of an intoxicated person to that of a person who is mentally ill. How are their situations similar? How are they different with regard to contractual capacity?