At the beginning of the year, a firm leased equipment on a capital lease, capitalizing $60,000 in its lease receivable account. The contract calls for December 31 payments of $15,000 . The lessor's annual reporting period ends December 31 and the contract reflects 10% interest. The lessee made the first payment as required. The direct method statement of cash flows for the lessor should reflect
which of the following in the first year of the lease contract (ignore noncash disclosures)?
a. $6,000 operating cash flow; $9,000 investing cash flow
b. $15,000 operating cash flow
c. $6,000 operating cash flow; $9,000 addition reconciling adjustment
d. $9,000 investing cash flow
e. None of these answers is correct.
A
You might also like to view...
If a seller says "These goods are first class," this is an example of:
A. sales talk. B. an express warranty. C. an implied warranty of merchantability. D. an implied warranty of fitness for a particular purpose.
In an ethical decision-making workshop, once each small group has a list of prioritized solutions and an implementation plan, how should the facilitator change the dynamics of the group?
a. Each group member should become a form of devil’s advocate and argue a different reason why the implementation plan should not succeed. b. The group should be divided in half, with one side supporting the highest priority option and half supporting the second-highest priority option. c. All but one member should support the implementation plan, and one member should be chosen to argue against it. d. The group should continue to function as a unit but shift its focus to opposing the plans of rival groups.
Explain the fundamental conflict over property rights versus worker rights.
Fill in the blank(s) with the appropriate word(s).
What a company's top executives are saying about where the company is headed long-term with respect to its future product-market-customer-technology mix
A. indicates what kind of business model the company is going to have in the future. B. serves to define the company's business plan. C. signals what the firm's emergent strategy will be. D. constitutes the strategic vision for the company. E. indicates what kind of products and services the company plans to offer in the future.