No investing or financing cash flow
Are these two ever equal?almost always, rarely, occasionally, only when there is no investing cash flow, only when there is no investing or financing cash flow?
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Marlin Bowling installs automatic scorekeeping equipment with an invoice cost of $350,000. The electrical work required for the installation costs $10,000.
On January 2, 2009, the Deadra Band acquires sound equipment for concert performances at a cost of $32,500. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts.
On February 12, 1998, Brandon Short and Michael Allen formed Angler Corporation to sell fishing tackle. Pertinent information regarding Angler is summarized.
A fleet of refrigerated delivery trucks is acquired on January 5, 2009, at a cost of $1,200,000 with an estimated useful life of eight years and an estimated salvage value of $100,000.
A company has 1,000 shares of 8%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2009.
Fisk Manufacturing purchases a large lot on which and old building is located as a part of its plans to build a new plant. The negotiated purchase price is $209,000 for the lot plus $104,000 for the old building
Essential to the effective operation of any Cost and Management Accounting system in any business is the ability to define the cost units and cost centres.
In early January 2009, Sanchez Builders purchase equipment for $102,000 to use in operating activities for the next five years. It estimates the equipment's salvage value at $21,000.
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