Calculations for Statement of Cash Flows (Indirect Method)

question 46

Essay

Calculations for statement of cash flows (indirect method)
During 2020, equipment was sold for $ 15,000. This equipment originally cost $ 24,000 and had a book value of $ 14,000 at the date of sale. Accumulated depreciation for equipment was $ 65,000 at December 31, 2019 and $ 62,000 at December 31, 2020.
Instructions
Based on the above information show how the sale (including any gain or loss), and the depreciation expense for 2020 would be shown on a statement of cash flows (indirect method). Include your calculations.

Assess various financing options for purchasing assets to determine the most cost-effective method.

Determine the value of regular contributions to savings plans over time, taking into account compound interest.

Calculate and compare the future and present values of annuities with varying payment intervals and interest rates.

Understand the concepts of ordinary general annuity, and its application in financial decisions.

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Definitions:

Servicing Model

A model of union activity that emphasizes providing services to members, such as negotiating contracts and addressing grievances, rather than focusing on broader social or political change.

Economic Exchange

The act of trading goods, services, or both between two or more parties, forming the basis of most economic systems.

European Social Partnerships

Collaborations between governments, employers' organizations, and trade unions in Europe to discuss and negotiate employment policies and working conditions.

Employee Empowerment Unionism

A labor movement approach focusing on empowering workers to make decisions affecting their working conditions and workplace democracy.