Oriole Company purchased machinery on January 1, 2020, for $96,000. The machinery is estimated to have a salvage value of $9,600 after a useful life of 8 years. Required:
a. Compute 2020 depreciation expense using the straight-line method.
b. Compute 2017 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2017.

See explanation

Explanation:

a. Compute 2020 depreciation expense using the straight-line method.

This will be:

= (Cost of the asset - Salvage value) / Useful life of the asset

= ($96,000 - $9600) / 8

= $86400 / 8

= $10,800

b. Compute 2017 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2017.

This will be:

= $10,800 × 3/12

= $10800 × 0.25

= $2700

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

c

explanation: