less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? A. 3,600,000 B. 6,000,000 C. 3,000,000 D. 1,800,000
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- 27. On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 Accounts receivable 6,000,000 Allowance for doubtful accounts 1,000,000 Inventory Property, plant and equipment Accumulated depreciation 7,000,000 22,000,000 4,000,000 Goodwill 3,000,000 2,000,000 Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? А. 3,600,000 1,000,000 В. 6,000,000 С. 3,000,000 D. 1,800,000takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Which statement is not true? Oa. Disclosures related to receivables are reported on the financial statement notes. Ob. Current assets are normally reported in order of their liquidity. Oc. All receivables that are expected to be realized in cash beyond 265 days are reported in the non-current assets section. Od. Cash and cash equivalents are the first items reported under current assets.B k es For each account on this company's balance sheet, show the change in the account during 2021 and note whether this change was a source or use of cash. (If there is no action select "None" from the dropdown options. Leave no cells blank - be certain to enter "0" wherever required. A negative answer should be indicated by a minus sign.) Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Liabilities and Owners' Equity Current liabilities Assets Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity $ $ $ $ $ $ $ $ $ $ 2020 13,280 7,520 42,400 63,200 256,800 320,000 40,000 14,240 54,240 32,000 40,000 193,760 233,760 320,000 Sources/Uses $ $ $ $ $ $ $ 2021 $ $ $ 14,600 19,200 51,000 84,800 315,200 400,000 41,800 21,600 63,400 24,000 40,000 272,600 312,600 400,000
- Which of the following causes a change in cash? Utilities expense is accrued at year-end. Collection of accounts receivable related to prior year sales. Amortization expense is recorded for an intangible asset. None of the answers are correct. Bad debt expense is recorded based on an estimated percentage of sales.Smith Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5240000 O $5790640. O $4063360. O $6416640. O $5240000. 712640 151000 313000 Smith should report cash provided by operating activities ofFill in the blanks: For calculating cash flow from operating activities, provision for doubtful debts is ________________ the profit made during the year (added to/deducted from).
- The records of Best Color Engraving reveal the following: Compute cash flows from operating activities by the indirect method for year ended December 31,2024.(Use a minus sign or parentheses for amounts that result in a decrease in cash and to show net cash used for operating activities. If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Data Table Net income $40,000 Depreciation expense $3,000 Sales revenue 50,000 Decrease in current liabilities 27,000 Loss on sale of land 4,500 Increase in current assets other than cash 9,000 Acquisition of land 42,000 Best Color Engraving Statement of Cash Flows (Partial) Year Ended December 31, 2024 Cash Flows from Operating Activities:S Niel, Financial Accounting, Se Hele 1 Beteen An ts Brief Exercise 12-6 Your answer is partially correct. Try again. alie balance sheets for Sheridan Company show these changes in noncash current asset accounts: accounts receivable decreased $75,100, prepaid expenses increased $28,300, and imverdories inca de t cash provided by operating activities using the indirect method, assuming that net income is $169,100. (Show amounts that decrease cash flow with either a-sign eg 15,000 or in n f Sheridan Company Statement of Cash Flows-Indirect Method Cash Flows from Operating Activities Net Income 169100 Adjustments to reconcile net income to Net Decrease in Cash Decrease in Accounts Receivable V 75100 Increase in Prepaid Expenses 28300 ncrease in Inventories 41400 24300 et Cash used by Financing Activities 144800 Click if you would like to Show Work for this question: Qpen Show Work2. ABC Co. has a department that performs machining operations on parts that are sold to contractors. A group of machines had an aggregate carrying amount of P3,690,000 on December 31, 2019. This group of machinery has been determined to constitute a cash generating unit for purposes of applying PAS 36, Impairment of Assets. A cash generating unit is defined in this standard, is the smallest identifiable group of assets that generates cash flows that are largely independent of the cash flows from other assets or groups of assets. Presented below are the data about future expected cash inflows and outflows based on the diminishing productivity expected of the machinery as it ages and the increasing costs that will be incurred to generate output from the machines.Year – Inflows - Outflows (Excludes noncash cash charges)2020 - 2,250,000 - 840,0002021 - 2,400,000 - 1,260,0002022 - 1,950,000 - 1,650,0002023 - 600,000 - 450,000The fair value of the machinery in this cash generating unit, net…
- Kennedy, Inc., reported the following data: Net income Depreciation expense Loss on disposal of equipment Gain on sale of building Increase in accounts receivable Decrease in accounts payable Prepare the operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, cash payments, or any negative adjustments. $133,712 16,162 (10,474) 21,575 8,728 (2,832) Kennedy, Inc. Statement of Cash Flows Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: 100 00021. New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is incorrect. Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balances at December 31, 2020 and 2019, are as follows. December 31 Debits 2020 2019 Cash $34,800 $32,300 Accounts receivable 32,800 29,800 Inventory 30,900 47,000 Property, plant, & equipment 100,800 95,900 Unamortized bond discount 4,600 5,100 Cost of goods sold 252,100 378,200 Selling expenses 142,700 172,900 General and administrative expenses 136,800 152,300 Interest expense 4,300 2,600 Income tax expense 20,400 60,600 $760,200 $976,700 Credits Allowance for doubtful accounts $1,300 $1,100 Accumulated depreciation—plant assets 16,600 15,100 Accounts payable 25,300 15,600 Income…my w E12-7 Preparlng and Evaluating a Slimple Statement of Cash Flows (Indirect Method) [LO 12-1, LO 12-2, LO 12-5] Suppose the income statement for Goggle Company reports $131 of net income, after deducting depreciation of $26. The company bought equipment costing $105 and obtained a long-term bank loan for $106. The company's comparative balance sheet, at December 31, is presented here. Requlred: 1. Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, and. financing activities (+ for increase and - for decrease). 2. Prepare a statement of cash flows using the indirect method. 6. Are the cash flows typical of a start-up, healthy, or troubled company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 6 Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GOGGLE COMPANY Statement of Cash Flows For the…