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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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Net Present Value Method

arsen [322]

Answer:

year net cash flow

0 -$150,000

1 $80,000

2 $65,000

3 $50,000

4 $40,000

A) NPV = -$150,000 + ($80,000 x .87) + ($65,000 x .756) + ($50,000 x .658) + ($40,000 x .572) = -$150,000 + $69,600 + $49,140 + $32,900 + $22,880 = -$150,000 + $174,520 = $24,520

B) Yes , because the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 15%. Since the NPV is positive ($24,520), it means that the cash inflows are higher than the cash outflows when we use a 15% discount rate.

4 0

4 years ago

Nokia is a cell phone brand that offers digital cameras as part of its cell phone products. It is now in direct competition with

irakobra [83]

Answer:

A. Envelopement

Explanation:

Envelopment is the process whereby an organization or a company moves into another company's market by combining it's own functionality with the other company functionality to create a multi-platform bundle. In this case, Nokia decided to add cameras which are Sony and Canon market to their mobile phones thereby creating a multi-platform bundle in form of a camera mobile phone.

3 0

3 years ago

A firm produces two goods q1 and q2. for economies of scope to occur, it must be true that:

Oliga [24]

For economies of scope to occur it must be true that THE COST OF PRODUCING THE TWO GOODS TOGETHER IS LESS THAN THE COST OF PRODUCING THE GOODS SEPARATELY.
The economy of scope is the proportionate savings that is gained by producing two or more different goods together, when the cost of doing so is less than that of producing each separately.

5 0

3 years ago

Incurring an expense for advertising on account would be recorded by:

Roman55 [17]

Complete Question:

Incurring an expense for advertising on account would be recorded by:

Group of answer choices

A) Debiting a liability account.

B) Crediting an asset account.

C) Debiting an expense account.

D) Debiting an asset account.

Answer:

C) Debiting an expense account.

Explanation:

Incurring an expense for advertising on account would be recorded by debiting an expense account.

This ultimately implies that, when a business firm incurs an expense such as on advertising its goods or services, the appropriate account on the balance sheet to record this will be to debit the advertising expense account and then credit the account payable.

5 0

3 years ago

Florissa's Flowers jointly produces three varieties of flowers in the same garden: tulips, lilies, and daisies. The flowers are

Pachacha [2.7K]

Answer:

1.) Lilies and Daisies received the largest portion of the joint costs.

2.) Daisies received the largest portion of the joint costs.

3.) a. The cost of watering the plants is a large portion of the joint costs and the company follows the same irrigation system for all three varieties of flowers.

Explanation:

Physical unit method :

Joint product _Flo /harvest _prop__JC__Alloc

Tullip ________10 _______0.20 _ 30 __ 6

Lilly _________ 20 ______0.40 _ 30 __ 12

Daisy ________ 20 ______0.40 _ 30 __ 12

Allocation = proportion * joint cost

B.)

Weighted average method :

If daisy requires 3 tines as much as lilies and tulips requires something in between both ;

Then ;

Daisy = 3 ; lilies = 1 ;

Tullips = (daisy + lilies) / 2 = (3 +1) / 2= 4/2 = 2

Weighted average method :

JP_Flo /H_ WF__WFW_W%__pro__JC__Alloc

Tullip_10 __ 2 __ 20 _ 20% _0.20 _ 30 __ 6

Lilly_ 20 ___ 1 __ 20 _ 20% _0.20 _ 30 __ 6

Daisy_20 __ 3__ 60 _ 60% _0.60 _ 30 __ 18

Allocation = joint cost * proportion

6 0

3 years ago