CQ Photography reported net income of $103,000 for 2022. Included in the income statement were depreciation expense of $6,500, patent amortization expense of $3,800, and a gain on disposal of plant assets of $4,000. CQ's comparative balance sheets show the following balances. Accounts receivable Accounts payable 12/31/22 $19,200 8,400 12/31/21 $27,000 Cash Flows from Operating Activities. 6,500 Calculate net cash provided by operating activities for CQ Photography using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) CQ Photography Statement of Cash Flows
CQ Photography reported net income of $103,000 for 2022. Included in the income statement were depreciation expense of $6,500, patent amortization expense of $3,800, and a gain on disposal of plant assets of $4,000. CQ's comparative balance sheets show the following balances. Accounts receivable Accounts payable 12/31/22 $19,200 8,400 12/31/21 $27,000 Cash Flows from Operating Activities. 6,500 Calculate net cash provided by operating activities for CQ Photography using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) CQ Photography Statement of Cash Flows
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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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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