An increase in inventory would decrease the cash flow.
An increase in current asset implies a blockage of funds, like in this instance, a blockage of funds in the company's inventory, which implies cash outflow and lowers the cash flow from operating activities using the indirect approach.
What is Operating cash flow?
- An essential metric for assessing the financial performance of a company's main business operations is operating cash flow.
- A cash flow statement's opening part, which also contains cash from investing and financing activities, shows operating cash flow.
- The indirect method and the direct approach are both ways to show operating cash flow on a cash flow statement.
- The indirect technique starts with the income statement's net income and then subtracts non-cash items to get the cash base amount.
- The focus of operating cash flows is on cash inflows and outflows associated with a company's core business operations, including the sale and purchase of inventories, the provision of services, and the payment of salaries.
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The cash transaction of a business is recorded in a cash book which is known as a single column cash book or simple cash book.
Explanation:
- In a single column cash book, all the cash receipts are recorded on the left hand (debit) side and all cash payments are recorded on the right hand (credit) side.
- The single-column cash book contains only one money column that is titled as "amount".
- Yes, we do record entries related to the purchase of stationery and furniture in a single column cash book.
- All cash related transactions are recorded in a single column cash book.
Answer:
FV= $126,585.60
Explanation:
Giving the following information:
Monthly deposit (A)= $1,721
Interest rate (i)= 0.08/12= 0.0067
Number of periods (n)= 12*5= 60 months
<u>To calculate the future value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {1,721*[(1.0067^60) - 1]} / 0.0067
FV= $126,585.60
Answer:
C
Explanation:
As far as coverages goes, Comprehensive is the least expensive. However, liability is the basic coverage required on most insurance policies. Many states require a minimum insurance coverage of liability.
Answer:
$150000
Explanation:
Solution
The first step to take is to calculate the recognized gain.
Given that:
the outside basis = $100,000
Cash =$10,000
The fair market value of the boot manufacturing company is = $260,000
Now,
The Recognized gain is stated as follows:
The Fair Market Value - (Outside Basis + Cash)
= $260000 - ($100000 + $10000)
= $260000 - $110000
= $150000
Therefore her calculated gain is $150000