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Nimfa-mama [501]
3 years ago
14

Assume the indirect method is used to compute cash flows from operations. For each item listed below, indicate the effect on net

income in arriving at cash flows from operations by selecting one of the following code.
Code
Cash Flows from Operating Activities
Add to Net Income A
Deduct from Net Income D

1. A decrease in accounts receivable
2. Increase in inventory
3. Increase in prepaid expenses
4. A decrease in accounts payable
5. Decrease in accrued liabilities
6. Increase in income taxes payable
7. Depreciation expense
Business
1 answer:
masya89 [10]3 years ago
5 0

Answer:

1. increase in accounts receivable            Deduct from net income  

2. increase in inventory                            Deduct from net income  

3. decrease in prepaid expenses           Added to net income  

4. Decrease in accounts payable           Deduct from net income  

5. increase in accrued liabilities           Added to net income  

6. increase in income taxes payable  Added to net income  

7. Depreciation expense                          Added to net income  

8. loss on sale of investment                  Added to net income  

9. Gain on disposal of equipment         Deduct from net income  

10. Amortization expense                         Added to Net income

Explanation:

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ivanzaharov [21]

Answer:

industry driving forces and competitive pressures favor some companies or groups and hurt others and the profit potential of different strategic groups varies because of strengths and weaknesses in each strategic group's position.

Explanation:

Strategic groups in this context refers to a group of entities who impose a similar business model/strategy.

Often times, simply by implementing similar strategies wouldn't necessarily give them similar results.

There are other factors that influence the way people behave in the market

For example

Some companies have a certain reputation that becomes a driving force for the consumers to purchase their product. Even if these companies implemented a wrong business model, they wouldn't receive as much damage since their reputation will made customers constantly back to purchase their product.

Another factors would be internet and technologies as a driving force. Often times, many people spread unjustified attacks toward a company that might ruin their sales.

7 0
3 years ago
Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indir
aniked [119]

Answer:

d. Gain on sale of land

Explanation:

When using the indirect method  in calculating net cash flow from operating activities, the net income is adjusted by the following items :

  1. Non-Cash flow items included in net income
  2. Changes in Working Capital items in net income.

From the choices given only gain from sale on land which is an income, has to be removed from net income to reach a cash flow figure.

3 0
3 years ago
During her interview at Masters International, Johanna was asked several questions inquiring about her past job performance, suc
Alexxx [7]
<h2>Johanna participated in a <u>behavioral-description </u>interview</h2>

Explanation:

Organization believes that if an employee can control is emotions and behave properly he / she is likely to work for more number of year in the company.

So in this situation, the interviewer tried to check the behavioral-description technique of handling various types of customers in her previous experience so that based on the reply, he consider the applicant.

There are some favorite questions of interviewer based on this technique are listed below:

  • How do you handle stress?
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8 0
3 years ago
Read 2 more answers
On January 1, 2021, Dean Corporation signed a ten-year noncancelable lease for certain machinery. The terms of the lease called
adell [148]

Answer:

c. interest expense of $107,361 and depreciation expense of $89,468.

Explanation:

The computation is shown below

The interest expense on lease is

= 8% of $1,342,016

= $ 107,361

ANd, the depreciation expense is  

= (present value of lease payments at the closing of 10 years) - (salvage value) ÷ life of the asset

= ($1,342,016 - $0) ÷ 15 years

 = $89,468

Hence, the option c is correct

6 0
3 years ago
The seller told the listing broker that the seller's loan was assumable. Upon reviewing the seller's loan documents the listing
VMariaS [17]

Answer:

Due on sale clause

Explanation:

A due on sale clause is the clause in which there is a promissory note or a loan that specified that the full balance could be called up at the time of sale or ownership transfer in order to protect the note

Therefore in the given situation, since it is mentioned that the seller has to pay the amount at the time of sale

So this represents the due on sale clause

4 0
3 years ago
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