fault company's records indicate that, during the current year, land costing $150,000 was sold. a loss of $25,000 was recognized on the sale. cash inflows associated with this sale were

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01-12-2022
Business

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fault company's records indicate that, during the current year, land costing $150,000 was sold. a loss of $25,000 was recognized on the sale. cash inflows associated with this sale were

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contexto38 contexto38 · Answer 1 · 2022-12-06T13:09:26+01:00

In a situation where fault company's records indicate sales of land costing $150,000 at a loss of $25,000 being recognized at the time of sales, the cash inflows associated with this sale will be $125,000.

Cash inflows includes the cash and cash equivalents received by an accounting firm during the current period. The Cash Inflow for the above situation can be computed using the available information as below,

Cash Inflow = Book Value - Realized Losses

Cash Inflow = 150000-25000

Cash Inflow = $125,000.

Therefore, the cash inflow for the Fault company will be $125,000.

Learn more about cash flows here:

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