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Alik [6]
1 year ago
10

The starting point for preparing the operating activities section using the indirect method is ______. Multiple choice question.

current liabilities current assets ending cash balance net income
Business
1 answer:
vitfil [10]1 year ago
5 0

Net income serves as the beginning point for the indirect technique of preparing the operating activities section.

<h3>What does "net income" mean?</h3>

Net income is the amount of money left over after all costs, such as salaries and wages, the cost of commodities or raw materials, and taxes, have been paid. Net income is the amount that a person keeps after paying taxes, health insurance premiums, and retirement contributions.

<h3>How is net income demonstrated?</h3>

Operating income for the business was $23,000 after operating costs of $12,500. After deducting interest expense of $1,500 and adding interest income of $1,700, ABYZ arrived at a net income before taxes of $23,200.

<h3>What is net income post-tax?</h3>

A person's income after taxes and deductions is referred to as their net income.

learn more about net income here <u>brainly.com/question/15530787</u>

#SPJ4

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"The degree of financial leverage is the ratio of​" ________ to percentage change in EBIT. A. operating profit B. percentage cha
Luda [366]

Answer:

D. percentage change in EPS

Explanation:

Leverage is an investment strategy of using borrowed money specifically, the utilization of varied financial instruments or borrowed capital to increase the potential return of an investment. Leverage also can be the quantity of debt a firm uses to finance assets. When one refers to a corporation , property or investment as "highly leveraged," it means item has more debt than equity.

The concept of leverage is employed by both investors and corporations . Investors use leverage to significantly increase the returns which will be provided on an investment. They lever their investments by using various instruments that include options, futures and margin accounts. Companies can use leverage to finance their assets. In other words, rather than issuing stock to boost capital, companies can use debt financing to take a position in business operations in an effort to extend shareholder value.

One can calculate the degree of operating leverage by dividing the share change of a company's earnings per share (EPS) by its percentage (%) change in its earnings before interest and taxes (EBIT) over a period.

A better degree of operating leverage shows a better level of volatility during a company's EPS.

5 0
3 years ago
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Why can a bank afford to pay interest rate on a savings account
Nadusha1986 [10]
How can a bank afford to pay interest? Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. ... The difference between the money earned as interest on loans, any operating expenses, and the money paid as interest to savings accounts is profit to the banks.
3 0
3 years ago
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On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The
Setler [38]

Answer:

1. In 2021, Capitalized interest = $205,000

2. In 2022, Capitalized interest = $3,870,000

3. Total cost = $5,231,980

Explanation:

See the attached file for the  calculation

3 0
3 years ago
On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to rece
hichkok12 [17]

Answer:

a) What is the expected transaction price with variable consideration estimated as the expected value?

  • original cost $5,800 if job is finished in one month (15% probability)
  • bonus price for finishing 2 weeks earlier $5,800 x 1.25 = $7,250 (25% probability)
  • bonus price for finishing 1 week earlier $5,800 x 1.15 = $6,670 (60% probability)

expected transaction price = ($5,800 x 15%) + ($7,250 x 25%) + ($6,670 x 60%) = $6,684.50

b) What is the expected transaction price with variable consideration as the most likely amount?

$6,670, since it has a 60% probability

3 0
3 years ago
Blossom Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employ
Xelga [282]

Answer:

A) to determine the cost of the asset being depreciated we must use the first year's depreciation using the double declining method to find 40% of the asset's value:

40% of the asset's value = $29,200

asset's value = $29,200 / 40% = $73,000

B) salvage value = asset's value - total depreciation = $73,000 - $65,700 = $7,300

5 0
3 years ago
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