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ziro4ka [17]
4 years ago
7

Cash flows from operating activities

Business
2 answers:
kompoz [17]4 years ago
7 0

Answer: The correct answer is "C. Should be presented using the direct method, but use of the indirect method of disclosure is allowed.".

Explanation: Cash flows from operating activities <u>should be presented using the direct method, but use of the indirect method of disclosure is allowed.</u>

According to IAS 7, the cash flow statement can be presented by both methods, in which operation, investment and financing activities must be taken into account and differentiated.

Bumek [7]4 years ago
6 0

Answer:

The correct answer is letter "C": Should be presented using the direct method, but use of the indirect method of disclosure is allowed.

Explanation:

Cash flow from operating activities is a portion of the Statement of Cash Flows that are included after the Balance Sheet and Income Statements in a company's Financial Statements. Cash flow from operating activities shows up in the first portion of the cash flow statement. The cash flow from financial activities demonstrated using <em>the indirect </em>or <em>direct method</em>.

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Answer:

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4 years ago
Justin Slugger is about to sign a contract with the Columbus Homers. The professional baseball team has given him two options of
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Answer:

Option 1 Present value = $18,181,818.18

Option2 Present value = $20,916,718.64

Option 2 which is an annuity for 15 years is a better option as it has a higher present value than option 1.

Explanation:

To decide the better option, we need to calculate the present value of option 1 which is the lumpsum and the present value of option 2 which is an annuity and compare these values.

The present value of option 1 can be calculated as follows,

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The present value of option 2 can be calculate using the formula of present value of annuity due as the payments will be made at the start of the period. The formula for present value of annuity due is attached.

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Option 2 which is an annuity for 15 years is a better option as it has a higher present value than option 1.

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