Newvo Ltd. shows a patent on its statement of financial position. At its year end of October
Question:
Newvo Ltd. shows a patent on its statement of financial position. At its year end of October 31, 2022, the caption read Patent (net) $66,000, and at its year end of October 31, 2023, the caption read Patent (net) $40,000. Newvo’s recorded amortization on the patent in the amount of $6,000 for the 2023 fiscal year and the remaining change in the account resulted from recording a loss on impairment for the year ended October 31, 2023. There were no purchases or sales of patents during the year. Determine the necessary caption(s) and amount(s) that should appear on Newvo’s statement of cash flows, using the indirect method. Indicate where the item(s) would appear on the statement (the operating, investing, or financing section(s)).
Step by Step Answer:
Intermediate Accounting Volume 1
ISBN: 9781119740469
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy