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3 years ago

A decrease in the inventory account during the year should be reported on the indirect method statement of cash flows as:

Business

2 answers:

Elza [17]3 years ago

5 0

Answer:

a.An increase in cash flows from operating activities

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets such as inventory, accounts receivables etc, (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. A decrease in assets (other than cash) is an inflow of cash while a decrease in liabilities is an outflow of cash.

Xelga [282]3 years ago

5 0

Answer:

a.An increase in cash flows from operating activities.

Explanation:

When calculating Cash Flow from Operating Activities an Increase in Current Assets is deducted and Decrease in Current Assets is Added in the Net Income to arrive at Cash Flow from Operating Activities in the Indirect Method of Cash Flow Statement.

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Which of the following actions demonstrates the caring theory of ethical management? An owner or manager allows employees paid t

Drupady [299]

Answer:

An owner or manager allows employees paid time off to work in a charity of their choice.

Explanation:

Usually ethical caring and management practices are often considered in conflict with each other. Usually management focuses on increasing profits while ethical caring focuses on moral actions and interpersonal relationships.

The caring theory of ethical management tries to combine management practices and ethical care, in order to reach a compromise where profit is no longer the single goal of the company. Companies will always need to make a profit to survive, but they can also focus on the ethical care of its employees, surrounding community and environment.

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3 years ago

James Harmon is twenty-five when he takes out $40,000 of twenty-pay life insurance.

Semenov [28]

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3 years ago

Read 2 more answers

The HR manager told Stella that the company pays the total health insurance costs for a family of four. As a single woman, this

rjkz [21]

Answer: Valence element

Explanation: In simple words, valence element refers to those elements which manipulates the behavior of an individual to choose one element over other due to some important factors in considerations.

In the given case, the perks offered by company does not fascinate Stella as she does find any utility in them due to absence of some elements. Hence we can conclude that she is low on valence element.

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3 years ago

For the past year, Zhao Events had taxable income of $198,600, beginning common stock of $68,000, beginning retained earnings of

juin [17]

Based on the other transactions, the amount of dividends that was paid that year was <u>$158,704.</u>

<h3>After tax Net income </h3>

= Taxable income x ( 1 - tax)

= 198,600 x ( 1 - 21%)

= $156,894

<h3>Dividends during year</h3>

= Opening retained earnings + After tax income - Closing retained earnings

= 318,750 + 156,894 - 316,940

= $158,704

In conclusion, the dividends paid were $158,704.

Find out more on dividends paid at brainly.com/question/13470638.

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2 years ago

Which financial statement shows the calculation of a business's net profit by deducting the expenses from the revenue of an orga

MariettaO [177]

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