FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Rhonda Company reported $70,000 of net income for 2020. During the year, machinery costing $10,000 and with
accumulated depreciation of $8,000 was sold at a loss of $500. Land and machinery were purchased during the year for cash. Selected account information follows:2020 December 31 January 1 Land $45,000 $32,000 Machinery 28,000 20,000 Accumulated Depreciation: Machinery 7,000 12,000 Required:
Compute the net cash from investing activities for 2020 using the visual inspection method. Use the minus sign to indicatecash out flow.
$fill in the blank 1
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- Please do not provide answer in image format thank youarrow_forwardplease answer do not image formatarrow_forwardNet present value method The following data are accumulated by Geddes Company in evaluating the purchase of $130,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $46,000 $78,500 Year 2 29,000 61,500 Year 3 11,000 43,500 Year 4 5,000 37,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Assuming that the desired rate of return is 10%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $ Would management be likely to look with favor on the proposal? Yes , the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 10%.arrow_forward
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