Question
In: Accounting
During the year, Murray Company sold equipment with a book value of $125,000 for $175,000 (original...
During the year, Murray Company sold equipment with a book value of $125,000 for $175,000 (original purchase cost of $225,000). New equipment was purchased.
Murray provided the following comparative balance sheets:
| Murray Company Comparative Balance Sheets At December 31, 20X1 and 20X2 |
||
| 20X1 | 20X2 | |
| Long-Term Assets | ||
| Plant and equipment | $1,000,000 | $1,025,000 |
| Accumulated depreciation | (500,000) | (525,000) |
| Land | 500,000 | 741,750 |
Required:
Calculate the
investing cash flows for the current year. Use a minus sign to
indicate a cash outflow.
$
Solutions
ekkarill92 answered 2 years agoRelated Solutions
1.Equipment with a book value of $82,000 and an original cost of $161,000 was sold at...
1.Equipment with a book value of $82,000 and an original cost of
$161,000 was sold at a loss of $33,000. Paid $100,000 cash for a
new truck. Sold land costing $310,000 for $405,000 cash, yielding a
gain of $95,000. Long-term investments in stock were sold for
$92,100 cash, yielding a gain of $14,000. Use the above information
to determine cash flows from investing activities. (Amounts to be
deducted should be indicated with a minus sign.)
2.
Net income was $467,000....
Cash Flows from Investing Activities During the year, Hayashi, Inc. sold equipment with a book value...
Cash Flows from
Investing Activities
During the year,
Hayashi, Inc. sold equipment with a book value of $125,000 for
$175,000 (original purchase cost of $225,000). New equipment was
purchased.
Hayashi provided the
following comparative balance sheets:
Hayashi, Inc.
Comparative Balance Sheets
At December 31, 20X1 and 20X2
20X1
20X2
Long-Term Assets
Plant and equipment
$1,000,000
$1,025,000
Accumulated depreciation
(500,000)
(525,000)
Land
500,000
711,750
Required:
Calculate the
investing cash flows for the current year. Use a minus sign to
indicate a...
Farmer Company sold a piece of equipment for $6,000. The equipment had an original cost of...
Farmer Company sold a piece of equipment for $6,000. The
equipment had an original cost of $34,000 and accumulated
depreciation of $31,000 at the time of the sale. Which of the
following correctly shows the effect of the sale on the elements of
the financial statements?
Assets
=
Liab.
+
Stk
Equity
Rev./Gain
−
Exp.
=
Net Inc.
Stmt of Cash Flow
A.
3,000
NA
3,000
3,000
NA
3,000
6,000 OA
B.
(3,000)
NA
(3,000)
NA
3,000
(3,000)
6,000 IA...
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000,...
BRAND purchased equipment for $290,000 cash, sold equipment
costing $150,000 with a book value of $100,000, and declared and
paid dividends during 2021. No new notes payable were issued during
the year.
Financial data follows. All balances are
normal.
Balance Sheet
Dec. 31, 2021
Dec. 31, 2020
Change
Cash
$ 36,000
$29,000
$ 7,000
Accounts receivable
125,000
97,000
28,000
Inventory
100,000
114,000
(14,000)
Equipment
740,000
600,000
140,000
Accum. depreciation
370,000
220,000
150,000
Accounts payable
170,000
150,000
20,000
Unearned revenue
74,000
44,000
30,000
Accrued...
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000,...
BRAND purchased equipment for $290,000 cash, sold equipment
costing $150,000 with a book value of $100,000, and declared and
paid dividends during 2021. No new notes payable were issued during
the year.
Financial data follows. All balances are
normal.
Balance Sheet
Dec. 31, 2021
Dec. 31, 2020
Change
Cash
$ 36,000
$29,000
$ 7,000
Accounts receivable
125,000
97,000
28,000
Inventory
100,000
114,000
(14,000)
Equipment
740,000
600,000
140,000
Accum. depreciation
370,000
220,000
150,000
Accounts payable
170,000
150,000
20,000
Unearned revenue
74,000
44,000
30,000
Accrued...
The book value of Victor's equipment was $140,000 at the beginning of the year and $180,000...
The book value of Victor's equipment was $140,000 at the
beginning of the year and $180,000 at year end. Depreciation
expense for the year was $10,000. If no equipment was sold during
the year, how much equipment did Victor purchase?
Group of answer choices
A. $40,000.
B. $50,000.
C. $60,000.
equipment costing $60,000 with a book value of $16,000 is sold for $21,000 which journal entry...
equipment costing $60,000 with a book value of $16,000
is sold for $21,000 which journal entry is used to record the
sale?
A). Inman Construction Company is considering selling excess machinery with a book value of $281,700 (original...
A).
Inman Construction Company is considering selling excess
machinery with a book value of $281,700 (original cost of $401,500
less accumulated depreciation of $119,800) for $275,200, less a 5%
brokerage commission. Alternatively, the machinery can be leased to
another company for a total of $285,400 for five years, after which
it is expected to have no residual value. During the period of the
lease, Inman Construction Company's costs of repairs, insurance,
and property tax expenses are expected to be $26,500....
Equipment with an original cost of $51,422 and accumulated depreciation of $33,306 was sold at a...
Equipment with an original cost of $51,422 and accumulated
depreciation of $33,306 was sold at a loss of $5,155. As a result
of this transaction, cash would
a.increase by $12,961
b.increase by $51,422
c.decrease by $5,155
d.decrease by $33,306
Average Rate of Return Lakeland Company is considering the purchase of equipment for $175,000. The equipment...
Average Rate of Return
Lakeland Company is considering the purchase of equipment for
$175,000. The equipment will expand the Company's production and
increase revenue by $40,000 per year. Annual cash operating
expenses will increase by $12,000. The equipment's useful life is
10 years with no salvage value. Lakeland uses straight-line
depreciation. The income tax rate is 25%. What is the average rate
of return on the investment?
Round answer to the nearest whole percentage, if applicable.
Average rate of return...
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