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Rainbow [258]
2 years ago
8

When preparing the statement of cash flows using the indirect method, depreciation expense is added to net income because it ___

___.
Business
1 answer:
kodGreya [7K]2 years ago
8 0

When preparing the statement of cash flows using the indirect method, depreciation expense is added to net income because net income is a starting point in measuring cash flows from operating activities

<h3>What is a Balance Sheet?</h3>

This refers to the inventory taken for all goods available in a warehouse, showing its financial records.

Hence, we can see that when a person is preparing the statement of cash flows with the indirect method, there is the addition of depreciation expense simply because the net income must be factored in.

Read more about statement of cash flows here:
brainly.com/question/735261

#SPJ1

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Compute the Work-in-Process transferred to the finished goods warehouse on April 30 using the following information:
malfutka [58]

Answer:

$1,100

Explanation:

Computation for the Work-in-Process transferred to the finished goods warehouse on April 30

Work-In-Process Inventory, April 1 300

Direct materials used in production 225

Direct labor costs incurred 400

Manufacturing overhead costs 350

Less Work-In-Process Inventory, April 30 ($175)

Work-in-Process transferred to the finished goods warehouse $1,100

Therefore the Work-in-Process transferred to the finished goods warehouse on April 30 will be $1,100

4 0
3 years ago
Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt
Andreyy89

Answer:

19.64%

Explanation:

The return on equity shall be determined through following mentioned formula:

Return on equity=Net profit/Equity

In the given question

Net profit=9.68%*$807,200=$78,136.96

Equity=Assets-Total Debt

          =$1,105,100-64%($1,105,100)

          =$397,836

Return on Equity=$78,136.96/$397,836

                           =19.64%

3 0
4 years ago
DuBois, Inc. announces a large stock dividend of 65% of the 4.96 million outstanding shares of common stock. The current price p
Karolina [17]

Answer:

Option (B) is correct.

Explanation:

Dividend per share:

= (65% of Par value of the stock)

= (65% × 0.01)

= $0.0065

Hence, the total dividend:

= (Dividend per share × outstanding shares of common stock)

= (0.0065 × 4.96 million)

= $32,240

Hence, the dividend would cause a decrease in retained earnings.

Therefore, the correct option is B.

6 0
4 years ago
Which pair is an example of products in complementary (joint) demand?
Travka [436]
Answer: B) cars and petrol
4 0
3 years ago
Why does anyone decide to produce or sell something?
Oliga [24]
Make Profit and be successful
3 0
2 years ago
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