Use the following to answer questions 16 – 20 Following are the transaction of TR Inc., which provides consulting services related to mining of precious metals. Amount of Transaction $250,000 125,000 5,000 Transaction ACash provided from long-term borrowing B Cash provided from consulting customers CCash used for payment of office rent PCash used for purchase of office equipment E Cash used to pay office utilities 30,000 1,200 FCash used for payment of employee salaries 24,300 GCash provided from sale of equipment that had been used in operations HCash used to pay the bank for a loan due this month Cash used for purchase of office supplies Purchase of company vehicle paying 30% cash and borrowing the rest. 20,000 175,000 100 30,000 16. $ Refer to transaction J, how much sho be included in cash used from investing activities? 17. $ operating activities (include Determine the cash flows from “_“ if needed) 18. $ Determine the cash flows from investing activities (include "“ if needed)
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Introduction:
A cash flow statement is a financial statement that details the amounts of cash and cash equivalents that enter and leave a company. The cash flow statement evaluates how a company manages its cash position, which means how much cash is produced to pay debts and operating expenses.
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