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3 years ago

why does depreciation and amortization affect a firm's cash balance on the balance sheet if it is a non-cash expense?

Business

1 answer:

Alisiya [41]3 years ago

8 0

Answer:

When you are preparing a statement of cash flows, you start with operating income. Operating income is basically net income + adjustments. The adjustments that always increase the cash flows are depreciation expense and amortization expense. Even though they are not actual cash expenses, they reduce taxable income and therefore, total taxes paid.

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When a doctor schedules you for a surgery and requests that the hospital have specific instruments and supplies for your procedu

Musya8 [376]

The doctor is responsible for supplying the required instruments for the surgery procedure.

<h3 /><h3>What is the real meaning of a doctor?</h3>

A person certified to exercise medicine, as a physician, surgeon, dentist, or veterinarian. someone who has been presented with a doctor's degree can be called as Doctor. He is a Doctor of Philosophy.

The buying process of surgical equipment for the successful operation of a patient is initiated by the doctor and the hospital authorities.

Therefore, The doctor is responsible for supplying the required instruments for the surgery procedure.

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3 years ago

Strategic business units that compete in a low-growth market but hold considerable market share are called ________. Their earni

kherson [118]

Strategic business units that compete in a low-growth market but hold considerable market share are called <u>Cash Cows</u> because their earnings and cash flows are high and stable.

The cash cow is a quadrant in the BCG matrix that shows that a unit has a consistently profitable business and possesses the following characteristics:

Competes in a low-growth market.
Holds considerable market share.
High and stable cash flows and earnings.

Thus, the strategic business unit with the above characteristics is a <u>cash cow</u>.

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3 0

2 years ago

On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased ass

Neko [114]

Answer:

$174,207.19

Explanation:

Amount to be recovered (Fair value) = $700,000.....A

PV of residual value = $100,000 * PVIF of $1(5%, 4) = $100,000 * 0.82270 = $82,270.........B

Amount to be recovered through periodic lease payments = A - B = $700,000 - $82,270 = $617,730

Annual lease payment = Amount to be recovered through periodic lease payments / PV of ordinary annuity of $1(5%, 4)

Annual lease payment = $617,730 / 3.54595

Annual lease payment = $174207.194123

Annual lease payment = $174,207.19

So, the amount of the annual lease payments is $174,207.19.

5 0

3 years ago

Net credit sales for the month are $670000. The accounts receivable balance is $170000. The allowance is calculated as 10% of th

Dominik [7]

Answer:

$177,200

Explanation:

Net realizable value of the accounts receivable can be found by the following formula, which is:

Net Accounts receivables (Step3) = Closing Accounts receivables before adjustment (Step1) -/+ Increase or decrease in Allowance for doubtful debts (Step2)

Step 1: Closing Accounts receivables before adjustment

Closing Accounts receivables before adjustment is $170,000.

Step 2: Increase or decrease in Allowance for doubtful debts

Opening Allowance for Accounts receivables is $9800

Change in Allowance for doubtful debts is the difference of the Closing Allowance calculated and Opening Allowance Value in the account.

Which means:

Allowance for the Year = Closing Allowance calculated - Opening Allowance Value

Allowance for the Year = 10% of $170,000 - $9,800

Allowance for the Year = $17,000 - $9,800 = $7,200

Step 3: Net Accounts receivables

By putting the values we have:

Net Accounts Receivables = $170,000 + $7,200 = $177,200

5 0

3 years ago

A brand new business-to-business purchase that is complex or risky and that requires extensive decision making is called:_______

Marta_Voda [28]

A brand new enterprise-to-business buy this is complex or risky and that requires sizeable decision-making is called: New venture buy.

A brand is a call, term, layout, symbol, or any other function that distinguishes one dealer's top or carrier from the ones of different dealers. certainly put, your emblem is your promise to your client. It tells them what they could count on from your products and services, and it differentiates your providing from that of your competition. Your logo is derived from who you're, who you want to be, and who humans understand you to be.

A corporation's brand is its identity, and it's miles one of the most valued parts of the business. The emblem is what consumers apprehend and competition worry about. company branding is an essential part of marketing an organization's products.

A brand is an intangible advertising or business idea that facilitates humans to pick out a business enterprise, product, or character. people often confuse brands with things like logos, slogans, or other recognizable marks, which are advertising tools that assist promote items and offerings.

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4 0

1 year ago