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3 years ago

When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is

Business

2 answers:

photoshop1234 [79]3 years ago

6 0

ist subtracted from investment i think

Ierofanga [76]3 years ago

4 0

Answer:

Added to net income ( B )

Explanation:

The preparation of the statement of cash flow can be done by two ways which are direct and indirect methods. in the direct methods the items on the income statement is converted on the basis of cash.

while in the indirect method of preparing statement of cash flow it starts with the registration of the accurred net income and adjusts the overall net income for changes that occur in assets and liabilities originally registered in the income statement. and also changes that occur in the income statement that involves items that might not affect the cash balance. this is done instead of changing the individual items in the net income as with the direct method.

hence the difference in the change observed based on the increase in liabilities is added to the net income based on the definition of the indirect method.

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Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missin

PilotLPTM [1.2K]

Answer:

Income Statements

2013 2014 2015

Sales revenue $294,170 $360,920 $414,180

Sales returns and allowances 11,200 13,470 20,740

Net sales 282,970 347,350 393,440

Beginning inventory 21,590 33,560 42,010

Purchases 245,240 263,090 298,600

Purchase returns and allowances (5,180) (8,330) (10,440)

Freight-in 8,140 9,480 12,440

Total cost of goods available 269,790 297,800 342,610

Ending inventory 33,560 42,010 47,870

Cost of goods sold 236,230 255,790 294,740

Gross profit on sales 46,740 91,560 98,700

Explanation:

a) Data and Calculations:

2013 2014 2015

Sales revenue $294,170 $ $414,180

Sales returns and allowances 11,200 13,470

Net sales 347,350

Beginning inventory 21,590 33,560

Ending inventory

Purchases 263,090 298,600

Purchase returns and allowances 5,180 8,330 10,440

Freight-in 8,140 9,480 12,440

Cost of goods sold 236,230 294,740

Gross profit on sales 46,740 91,560 98,700

Beginning inventory 21,590 33,560 42,010

Purchases 245,240 263,090 298,600

Purchase returns and allowances (5,180) (8,330) (10,440)

Freight-in 8,140 9,480 12,440

Total cost of goods available 269,790 297,800 342,610

Ending inventory 33,560 42,010 47,870

Cost of goods sold 236,230 255,790 294,740

3 0

3 years ago

Whenever Josh goes to his favorite restaurant, he wants to buy tiramisu, his favorite dessert. Despite the fact he would enjoy t

slamgirl [31]

Answer:

C. framing effects

Explanation:

Based on the information provided within the question it can be said that the behavioral economists would say that Josh's decision is affected by framing effects. This term refers to a cognitive bias where people tend to base their choices of different options based on the positive or negative connotations presented. Which is what Josh is doing by basing his decision on who else is having desert.

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4 years ago

. Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its lead

OLEGan [10]

Answer:

B. increase the supply of its doll now before the other doll hits the market

Explanation:

Funsters Inc. should increase supply of it´s popular doll now before the doll of Toysorama company hit the market at low price. This will give first mover advantage to Funsters Inc., Which will help the company to grab market share and gain revenue from the market before other company launches its doll. Competition in the market can be handled by taking first step.

3 0

4 years ago

Why would a free market never operate at a quantity greater than the equilibrium quantity? Hint: What would be required for a tr

Volgvan

Answer:

This is because in a free market, the prices of goods and services are determined by market forces, and the price mechanism will always keep the market at equilibrium.

Explanation:

The free market is a market without government intervention, equilibrium price and quantity are determined by the interaction of the market forces, also called price mechanism , which Adams Smith referred to as the invisible hands in the market.

The free market cannot operate outside the equilibrium because, the market forces will always keep the market towards equilibrium. Even if equilibrium is distorted, as a result of any shock, the market forces will bring the market towards equilibrium all things being equal, except there is market failure.

a free market is a market in which prices of goods and services are set by demand and supply and are allowed to reach their point of equilibrium without government intervention

3 0

4 years ago

Charging higher prices to residential customers than to industrial customers is an example of A. second-degree price discrimina

NikAS [45]

Answer:

The correct answer is D

Explanation:

Third Degree Price Discrimination is the kind of the discrimination, which occurs when the company charges a different price to the different groups of consumers.

For example, the movie cinema or theater might divide or categorize the moviegoers into children, seniors and adults, while each of them will pay a different price when watching the same movie.

So, in this case, that the residential customers are charged higher prices to industrial customers, which is an example of third degree price discrimination.

3 0

4 years ago