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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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Which of the following best describes the difference between a convertible bond and a warrant? Convertible bonds give the invest
levacccp [35]

Answer: Statement A

Explanation: Convertible bonds is a type of bond security which gives its holder the right to convert each bond to a specified number of shares. These are hybrid securities having features of both equity and debt.

.

Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.

.

Thus, from the above explanation we can conclude that statement A is correct.

4 0
3 years ago
I want to have a college fund for my daughter. She is 5, so I have 13 years to achieve my goal of $50,000. The bank says I can e
Tju [1.3M]

Answer:

$2960 yearly savings

Explanation:

From the values given and from mathematical manipulation, he or she needs a contribution of at least $2900 every year in order to achieve his goal of $50,000.

                     EXPLANATION

  • If the child is 5yr old now, in 13years time, she will be 18yr old.
  • $2950 target yearly

  • for the next 13years, it would have amount to $38350

  • remember the bank will give an annual interest rate of 2%
  • so for 13years, that's 26% = 0.26

  • In the 13th year, he would have saved $38350, add the 26% interest for the duration of 13years = 26% x $38350 + $38350 = $48321

  • His savings will fall between $2950 - $2960 yearly.

3 0
3 years ago
Your automatic payment option pays bills of $23.17, $55.67, $2,345.15, $575.25 and $1.15. How much was the mean payment?
ollegr [7]

Answer:

$600.078

Explanation:

the mean is also the average which is the total sum divide by 5

0 0
3 years ago
Coal Miner Co. acquired coal rights for $100,000,000. It is estimated that there are 2,500,000 tons of the resource, and during
Nina [5.8K]

Answer:

C

Explanation:

To estimate the amount of depletion for the current year?

We need to know the rate of depletion which

$100,000,000/2,500,000 = $40/ton

The amount of depletion for the current year will be

$40/ton x 500,000 tons = $20,000,000

6 0
3 years ago
Read 2 more answers
The numerator in the calculation of the ratio of liabilities to stockholders' equity is a.Total Assets. b.Total Stockholders' Eq
xxMikexx [17]

Explanation:

a.Total Assets

The numerator in the calculation of the ratio of liabilities to stockholders' equity is Total Assets

4 0
3 years ago
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