View Full Version : Accounting issue
 
 SamiBrady
Oct 24, 2009, 03:32 PM
Margine sold for 18,000 equipment that cost 40,000 and had a book value of 30,000. Margine would report?
a. operating cash inflows of 18000
b. operating cash inflows of 8000
c. financing cash inflows of 18000
d. investing cash inflows of 18000
 
could u  help me out with this one... thanks  Sami
 morgaine300
Oct 24, 2009, 11:51 PM
Please see the guidelines for posting homework problems:
Ask Me Help Desk - Announcements in Forum : Homework Help (https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html)
 
And since it's multiple choice, it's also nice to see why you chose a particular answer.
 SamiBrady
Oct 25, 2009, 11:46 AM
I'm thinking it's B... but I'mnot sure
 correa58
Oct 25, 2009, 05:01 PM
3.   
Vodopich Corporation has provided the following data from its activity-based costing system:
 
 Activity Cost Pool	 Total Cost	 Total Activity
 Assembly	 $703,000	 37,000	  machine-hours
 Processing orders	$103,500	 2,300	  orders
 Inspection	$114,480	 1,590	  inspection-hours
 
Data concerning the company's product P58Z appear below:
 
 Annual unit production and sales	 460	 
 Annual machine-hours	 910	 
 Annual number of orders	 91	 
 Annual inspection hours	 33	 
 Direct materials cost	 $35	 per unit
 Direct labor cost	 $24	 per unit
 
According to the activity-based costing system, the average cost of product P58Z is closest to (rounded):
	 $106 per unit
	 $46 per unit
	 $52 per unit
	 $111 per unit
References
 morgaine300
Oct 25, 2009, 09:17 PM
correa58, please post your question to your own thread.  It's not even related to the original post.  (Think what would happen if everyone just posted all their questions in the same thread.)
 
Also see the guidelines for posting homework problems:
Ask Me Help Desk - Announcements in Forum : Homework Help (https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html)
 
I just posted that in post #2, which obviously you ignored.
 morgaine300
Oct 25, 2009, 09:20 PM
SamiBrady, two things.  One, it's cash flows.  You have to concentrate on the actual cash received.  Did you receive 8000?
 
Second, selling equipment isn't an operating activity.  That has to do with your day-to-day operations, so related to your sales and purchases and everyday expenses, and the asset/liability accounts that go along with that, such as A/R, A/P, inventory.
 
Investing activities are basically all assets that aren't current.  Assets are what the company invests in.
 
Financing activities are all liabilities that aren't current and all equity.  Financing means how the company financed themselves, through either debt or equity.
 azharaa
Mar 23, 2012, 02:33 AM
Vodopich Corporation has provided the following data from its activity-based costing system:
 
 Activity Cost Pool 	 Total Cost 	 Total Activity
 Assembly 	$740,000 	37,000 	 machine-hours
 Processing orders 	$70,400 	1,600 	 orders
 Inspection 	$107,440 	1,580 	 inspection-hours
 
Data concerning the company's product P58Z appear below:
 
 Annual unit production and sales 	430 	 
 Annual machine-hours 	900 	 
 Annual number of orders 	93 	 
 Annual inspection hours 	26 	 
 Direct materials cost 	$35 	 per unit
 Direct labor cost 	$24 	 per unit
 
According to the activity-based costing system, the average cost of product P58Z is closest to (rounded):
	$115 per unit
	$51 per unit
	$55 per unit
	$111 per unit