Cake Company determined as a result of a plant re-arrangement that there had been a significant change in the manner in which a machinery was going to be used in manufacturing process. Estimated cash inflows from the use of the machinery-P1,750,000 Estimated cash outflows from the use of the machinery-P375,000 Estimated residual value of the machinery at the end of its useful life-P250,000 Estimated income tax payments-P100,000 What total amount should be included as future cash flows in determining the machinery's value in use?
Cake Company determined as a result of a plant re-arrangement that there had been a significant change in the manner in which a machinery was going to be used in manufacturing process. Estimated cash inflows from the use of the machinery-P1,750,000 Estimated cash outflows from the use of the machinery-P375,000 Estimated residual value of the machinery at the end of its useful life-P250,000 Estimated income tax payments-P100,000 What total amount should be included as future cash flows in determining the machinery's value in use?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cake Company determined as a result of a plant re-arrangement that there had been a significant change in the manner in which a machinery was going to be used in manufacturing
process.
Estimated cash inflows from the use of the machinery-P1,750,000
Estimated cash outflows from the use of the machinery-P375,000
Estimated residual value of the machinery at the end of its useful life-P250,000
Estimated income tax payments-P100,000
What total amount should be included as future cash flows in determining the machinery's
value in use?
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