On January 1, Year 1, XYZ Company paid $60,000 cash to purchase a truck. The truck has a $5,000 salvage value and a 4-year useful life. XYZ uses the double-declining-balance method. How much depreciation expense would XYZ report on its Year 2 income statement?
A. $20,000
B. $13,750
C. $15,000
D. $30,000
Answer: C
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The ________ is a nonhierarchical method that specifies several cluster centers at once. All objects within a pre-specified threshold value from the center are grouped together
A) optimizing partitioning method B) sequential threshold method C) parallel threshold method D) Ward's procedure
A disadvantage of post audits is that they are costly
Indicate whether the statement is true or false
At Peter James Consulting, managers are in the process of submitting their budget cuts for the next fiscal year. In evaluating alternatives, managers should consider all of the following except
A. Are these the right choices to make for our company? B. Is this the choice that I, personally, would like to make? C. Will these cuts impact the quality of our service? D. Is this the best use of our resources company-wide? E. What is the budget impact of these changes?
The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018 are shown below.Extra Surplus CompanyBalance SheetDecember 31, 2017AssetsCash $10,000Accounts Receivable 5,000Inventory 12,000Property and Equipment, Net 20,000$47,000Liabilities and Stockholders'; EquityAccounts Payable $10,000Note Payable, Long-Term5,000Common Stock20,000Retained Earnings 12,000$47,000Extra Surplus CompanyIncome StatementFor the Year Ended December 31, 2018Sales $13,000Cost of Goods Sold 3,000Salaries and Wage Expense 3,000Interest Expense 1,000Other Expenses 500Net Income$ 5,500 Additional data:• Sales were $13,000; $8,000 in cash was received from customers.• Bought new land for cash, $10,000.• Sold other land for its book value of
$5,000.• Paid $1,000 principal on the long-term note payable and $1,000 in interest.• Issued new shares of stock for $10,000 cash.• Cash dividends of $1,000 were declared and paid to stockholders.• Paid $5,500 on accounts payable.• No inventory purchases were made; other expenses were incurred on account.• All wages were paid in cash.• Other expenses were on account.Required:Part a. Prepare a balance sheet at December 31, 2018.Part b. Prepare the statement of cash flows using the direct method. What will be an ideal response?