FratFiles

• Save Paper

i. Depreciation and amortization expense is included in the operating section of the cash flow statement because expense reduce net income and therefore must be added back to the net income amount.


ii. $72,759 used to purchase new equipment, located in the cash flow from operating activities section.


iii. $1,107 from the sale of equipment located in the cash flow from operating activities section.


iv. BV = 2,094 (original cost of equipment) - 1,569 (accumulated depreciation) = 529. Gain (loss) = 1,107 (proceeds from sale of equipment) - 529 (book value of equipment) = 582 (gain).


b. For the years 1993, 1994, and 1995 Weis Markets, Inc. has been able to steadily increase Net Income. Their net cash from operating activities has decreased between 1995 and 1994 but it is still at a reasonable level. However, their ability to generate cash......

View the rest of this paper...

Approximate Word Count: 328
Approximate Pages: 2 (250 words per double-spaced page)

Similar Essays

1. Weiss Markets Statement Of Cf
   

   weiss markets statement of cf. i. Depreciation and amortization expense is
   included in the operating section of the cash flow statement ...