All categories

1 year ago

Use the direct method to determine the net cash provided by operating activities.

1 answer:

3 0

In order to calculate cash flows we must before adding the net cash from investment and financing activities to determine the company's net cash rise or reduction for that time period, the cash outflows and inflows are deducted to determine the net cash flow from operational operations.

Operating activities' net cash flow: $337,500

$700,000 in earnings before income taxes.

Vendor payments in cash: (525,000)

Customer cash taken in: $1,500,000

<h3><u>How do you figure out the cash that operating activities provide?</u></h3>

Flow of Cash from Operations

Net Income plus Non-Cash Items plus Changes in Working Capital equals Cash Flow from Operations.

Step 1: Take the net income from the income statement to begin calculating operational cash flow.

Add back all non-cash items in step two.

Adjust for variations in working capital in step three.

To Learn more about Statement of Cash flows, click the links,

brainly.com/question/27454259

#SPJ4

You might be interested in

The precaution of prohibiting employees from bringing personal computing devices into a facility is what type of security contro

Marat540 [252]

The precaution of prohibiting employees from bringing personal computing devices into a facility is procedural type of security control.

What are procedural security controls?

Procedural controls builds a framework for validating and maintaining the computer system and for ensuring that users can understand how to use the system. Procedural controls basically take the form of standard operating procedures and user manuals.

Why is procedural security important?

Procedure security measures are important to improving security and preventing escapes as it allows risks to be addressed and dealt with appropriately.

Learn more about procedural security:

brainly.com/question/15027705

#SPJ4

3 0

1 year ago

Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Com

omeli [17]

Answer:

Explanation:

The preparation of the stockholders' equity section of the balance sheet is shown below:

Common stock, $10 par value,

103,000 shares authorized and 20,000

shares of common stock issued $200,000 (20,000 × $10)

Paid in capital in excess of par value $120,000 {20,000 shares × ($16 - $10)}

Preferred stock, 3000 shares issued at par $24,000 (3,000 shares × $8)

Paid in capital in excess of par value $36,000 {3,000 shares × ($20 - $8)}

Retained earnings $60,000

Total $440,000

7 0

3 years ago

Why do people start business?

max2010maxim [7]

Answer:

Because certain individuals rather be self-employed and given a more flexible schedule. Entrepreneurs have the ability to use their talents or ideas to gain profit.

Explanation:

3 0

2 years ago

Scobie Company began 2016 with a retained earnings balance of $142,400. During an examination of its accounting records on Decem

tino4ka555 [31]

The total retained earnings on 31st December 2016 is $197,100. The journal entry are attached below.

<h3>What is Retained Earnings?</h3>

Retained earning is basically the profits of the company which is kept aside to meet the future requirement of the company. It the amount which is left over after deducting all cost such as direct cost, indirect cost, income taxes and dividend.

The retained earning is used in the future projects or for buying the equipment for the company.

Learn more about retained earnings here:

brainly.com/question/14529006

#SPJ1

6 0

2 years ago

Which of the following correctly describes globalization

kondor19780726 [428]

what is your question ??

I think u have missed some parts here in the question ..

5 0

2 years ago