Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods. The $50,000 increase in inventory must be used in the statement of cash flow calculations because it increases the outflow of cash (all else equal).
An increase in the company's inventory indicates that the company has purchased more goods than it has sold. It means an additional cash outflow as cash must be used to purchase additional consumables. Cash outflows have a negative or unfavorable impact on a company's cash position.
Therefore, as inventories increase, the company will have to spend money to buy them (cash outflow). On the other hand, the decrease in inventory will be cash in for the amount sold. We arrive at the following rule: Inventory Increase => Cash Outflow (Negative)
An indirect way to create a cash flow statement is the change in the amount of cash due to operating activities in the account on the balance sheet. and adjust the net profit for the year.
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Answer:
a. 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.
Explanation:
To calculate the rate of inflation/deflation, we have to divide by the oldest price index.
The second year, the variation of the price index was:

This means a 9.1% deflation.
The third year, the variation of the price index was:

This means a 4% deflation.
Answer: The cases in which the Review Commission renders decisions arise from inspections conducted by a Federal agency separate from the Review Commission, the Occupational Safety and Health Administration (OSHA), which is a part of the Department of Labor. OSHRC, or the Review Commission, and OSHA were created by the Occupational Safety and Health Act of 1970, but the Act mandated that the Review Commission be an independent agency (i.e., not part of another Federal department) to ensure that parties to agency cases receive impartial hearings.
Explanation:
Answer:
capital
Explanation:
The capital assets are all those belongnings of the company that help creating revenue.