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mamaluj [8]
3 years ago
14

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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All sales are made on credit. Based on past experience, the company estimates 2.5% of ending account receivable to be uncollecti
Misha Larkins [42]

Answer:

Debit Bad Debts Expense $12,475

Credit Allowance for Doubtful Accounts $12,475

Explanation:

Calculation for estimated bad debts expense:

Explanation

Accounts receivable * Sales uncollectible

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Hence:

11,125 +Allowance for Doubtful Accounts 1,350

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Therefore the estimated bad debt will be:

Debit Bad Debts Expense $12,475

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2 years ago
Target profit is $100,000; fixed overhead costs are $120,000 and fixed selling and administrative costs are $50,000. If total va
vlada-n [284]

Answer:

40%

Explanation:

The markup percentage to the variable cost using the variable cost method can be obtained by dividing the addition of the target profit and total fixed cost by the total variable cost as follows:

Total fixed cost = Fixed overhead costs + Fixed selling and administrative costs = $120,000 + $50,00 = $170,000

The markup percentage to the variable cost = (Target profit + Total fixed cost) / Total variable cost = ($100,000 + $170,000) / $675,000 = $270,000 / $675,000 = 0.40, or 40%.

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3 years ago
A corporation has outstanding $5,000,000 of 9 1/2% 20-year debentures, with a conversion price of $40. If all the debentures wer
Fiesta28 [93]

Answer:

The 125,000 shares of common stock would be issued

Explanation:

For computing how many shares of common stock would be issued, we have to use the formula of common share produced which is shown below:

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where,

Par value is $5,000,000

And, the conversion is $40

Now, apply these values to the above formula

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