D scF problem alt.pdf: AC | SCF problem alt.pdf × ? D SCF problem alt.pdf × y 9

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D scF problem alt.pdf: AC | SCF problem alt.pdf × ? D SCF problem alt.pdf × y 9 sCF problem alt.pdf × ? e Chegg Study l Guided Sc × ? file:///C:/Users/Katie/Documents/SCF%20problem%20alt.pdf Margarita Madness Income Statement Year ended Dec 31, 2012 12,000 Sales Operating expenses 9,100 450 1,500 COGS Depreciation Insurance Total operating expense Operating income Interest revenue Gain on sale of equipment Income before taxes Income tax Net income 11,050 950 400 100 1,450 580 5870 Margarita Madness Balance sheet Dec 31, 2012 Assets Cash A/R Inventory Prepaid Ins Equipment 31-Dec-12 31-Dec-11 $2,560 $300 530 820 100 2,400 Less: Acc Depr(900) (700) $4,600 $ 3,450 550 810 80 1,500 Total Assets Liabilities & SE A/P Unearned revenue $ $1,200 $700 500 600 12:27 AM O Type here to search 6/10/2018 2

Explanation / Answer

Working for calculation of cash received from sale of equipment

Cash flow statement - Indirect method

Beginning rquipment value $   2,400 Less: Ending equipment value $ (1,500) Cost of equipment sold $       900 Less: Beginning accumulated depreciation $     (700) Less: Depreciation for the year $     (450) Add: Ending accumulated depreciation $       900 Add; Gain on sale of equipment $       100 Cash received from sale of equipment $       750

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