Test: Chapter 16 Test This Question: 10 pts 3 of 8 (1 complete) Sandra\'s Bridal

Question

Test: Chapter 16 Test This Question: 10 pts 3 of 8 (1 complete) Sandra's Bridal Shops earned net income of $21,000, which included depreciation of $16,000. Sandra's acquired a $124,000 building by borrowing $124,000 on a long-term Requirements 1. How much did Sandra's cash balance increase or decrease during the year? 2. Were there any non-cash transactions for the company? If so, show how they would be reported in the statement of cash flows. Requirement 1. How much did Sandra's cash balance increase or decrease during the year? Complete the following table to cal Net income Depreciation Expense Purchase of building with a long-term note Complete the tolowing table to calculate Sandra's cash balance, and indicate whether this balanc reapresents an increase or a decrease n cash (Enter a 0 for any temes) in cash ransactions for the company? If so, show how they would be reported in the statement of cash flows Requirement Were there any non-cash transactions for the company? Show how they would be reported in the statement of cash flows 2. Were there any non-cash t Choose from any list or enter any number in the input fields and then continue to the next question. O Type here to search

Explanation / Answer

1.

2. Yes, Sandra Bridal Shops acquisition of building through long term note was non cash transaction . Acquisition of building with long-term note payable is reported in non-cash investing and financing activities.

Net Income $21,000 Depreciation Expense $16,000 Purchase of building with long term note $0 Increase in Cash $37,000

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