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belka [17]
2 years ago
14

Explain why a $ 50,000 increase in inventory during the year must be included in developing cash flows from operating activities

under both the direct and indirect methods.
Business
1 answer:
Simora [160]2 years ago
5 0

Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods. The $50,000 increase in inventory must be used in the statement of cash flow calculations because it increases the outflow of cash (all else equal).

An increase in the company's inventory indicates that the company has purchased more goods than it has sold. It means an additional cash outflow as cash must be used to purchase additional consumables. Cash outflows have a negative or unfavorable impact on a company's cash position.

Therefore, as inventories increase, the company will have to spend money to buy them (cash outflow). On the other hand, the decrease in inventory will be cash in for the amount sold. We arrive at the following rule: Inventory Increase => Cash Outflow (Negative)

An indirect way to create a cash flow statement is the change in the amount of cash due to operating activities in the account on the balance sheet. and adjust the net profit for the year.

Learn more about inventory here;

brainly.com/question/24868116

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According to recent data, only 36 percent of Uber's current employees are women. How do you think this situation helped perpetua
kozerog [31]

Answer and Explanation:

If we considered the business type that uber begins i.e. lack of the skilled and the experienced professionals. So here we can conclude that with the 36 pf the present employees of the uber that contains women perpetuates with a flawed corporate culture

So as per the given situation, the above represent the explanation and the same should be considered

4 0
2 years ago
Stephanie is nervous about giving a presentation at the marketing firm where she works. One of her male coworkers told her, "Don
Mice21 [21]

Answer:

Stereotype threat

Explanation:

A. Stereotype threat

Explanation:

Stephanie's anxiety stems from Stereotype threat. She is way too concerned about how she appears to her audience. This has caused her to be nervous. She is in a predicament where she feels at risk of conforming to stereotypes about her gender. Especially because of her male coworker who told her, "don't be such a girl, attack that presentation! "

8 0
3 years ago
Read 2 more answers
Marlene works in a manufacturing facility, Carz Parts. Throughout the building there were posters and calendars of a sexually ex
ser-zykov [4K]

Answer:

d. has a hostile work environment.

Explanation:

Based on this scenario, it seems that Carz Parts has a hostile work environment. This is a work environment that is created by a boss or coworker whose actions, communication or behavior make doing your job impossible by altered the terms, conditions, and/or reasonable expectations of a comfortable work environment. Which in this scenario, the sexually explicit posters were put up and/or allowed by the boss, and since the posters make Marlene very uncomfortable which prevents her from doing her job correctly the boss has therefore created a hostile work environment.

4 0
3 years ago
Adriana Graphic Design receives $1,500 from a client billed in a previous month for services provided. What general journal entr
mario62 [17]

Answer:

Dr Cash $1,500

Cr Account Receivable $1,500

Explanation:

Based on the information given we were told that Adriana receives the amount of $1,500 from a client that was billed in a previous month for services provided which therefore means that the appropriate general journal entries that Adriana Graphic Design will make to record this transaction is:

Dr Cash $1,500

Cr Account Receivable $1,500

4 0
2 years ago
The production possibilities curves suggest that rev: 09_17_2020_QC_CS-228777 Multiple Choice West Mudville should specialize in
ratelena [41]

Answer: West Mudville should specialize in, and export, baseball bats.

Explanation:

Each country should specialize in the good that it has a lower opportunity cost in producing.

West Mudville

Opportunity cost of producing baseball bats = 9/9 = 1 baseball

Opportunity cost of producing baseball = 9/9 = 1 baseball bat

East Mudville

Opportunity cost of producing baseball bats = 8/4 = 2 baseballs

Opportunity cost of producing baseball = 4/8 = 0.5 baseball bats

From the above, West Mudville has a lower opportunity cost than East Mudville in the production of baseball bats and so it should specialize in and export that.

3 0
3 years ago
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