How does allowing depreciation help companies?
Identify at least two (2) factors that have led to the explosive growth of digital crime over the past few decades.
August 7, 2017Describe the relationships of at least two different couples you know who exemplify different types of love.
August 7, 2017Module 02 Questions/Problems – Depreciation and Statement of Cash Flows
Write your answers in the space provided for each of the questions below:
Part 1: Answer the following depreciation problems:
A home healthcare care company purchases a van for home visits for $60,000. The van depreciates $15,000 a year. What will the book value of the van be in 1 year? In 2 years? How many years will it be until it’s worth $0?
How does allowing depreciation help companies?
Part 2: For each of the transactions below, assign the appropriate cash-related activity (A-D):
A. Cash flows from operating activities
B. Cash flows from investing activities
C. Cash flows from financing activities
D. Net increase (or decrease) in cash and cash equivalents
$50,000 repayment of long-term loan.
$7,000 proceed from the sale of a used x-ray machine.
$40,000 worth of services rendered.
$15,000 in payments from patients.
$1,000,000 purchase of new office space for expanding services.
$10,250 net cash and cash equivalents at the end of the year.
$500,000 received by the issuance of a long-term bond.
$100,000 proceeds from an investment in a 10-year bond.
