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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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By the time you turn 30 years old, what insurance do you expect to have?

WINSTONCH [101]

honestly you would need all of them because they are very important to have as you get older

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3 years ago

Read 2 more answers

Burning one gallon of gasoline in a car releases approximately 20 pounds of CO2 into the atmosphere. One average person drives 6

Oksanka [162]

Answer: 20,000 pounds of CO₂

Explanation:

30 mpg car.

Number of gallons of gasoline used:

= 60,000 / 30

= 2,000 gallons

CO₂ released = 2,000 * 20

= 40,000 pounds

20 mpg car

Number of gallons used:

= 60,000 / 20

= 3,000 gallons

CO₂ released = 3,000 * 20

= 60,000 pounds

Difference:

= 60,000 - 40,000

= 20,000 pounds of CO₂

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3 years ago

Brand awareness facilitates decision-making and is especially important for which type of consumer goods?

attashe74 [19]

<span>Brand awareness facilitates decision-making and is especially important for which type of consumer goods: public goods.

Public goods are non-excludable items so there is fair game for anyone and everyone in the market for an item to make this purchase. Because this items are everywhere, there is normally a decent amount of competing brands with the same product though packaging, quality and quantity can differentiate. Brand awareness helps the consumer know which brand to purchase when there are dozens to choose from. </span>

4 0

4 years ago

Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa p

sp2606 [1]

Answer:

No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.

Explanation:

Profit = Sales revenue - Processing Cost

1-The Cocoa powder result in $3,900 profit ($14,000 - $10100) to the Choco Heaven company

2- If the company makes Chocolates syrup it will get profit of $34,000 ($104,000 - $70,000)

3- f the company makes Boxed assorted Chocolates it will get profit of $26,000 ($202,000 - $176,000)

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3 years ago

Suppose that the market equilibrium price for a medical check-up is $50, in a market in which there is no health insurance. To e

never [62]

Answer:

a. Price ceiling

b. see graph

c. Increases

d. Increases, decreases

Explanation:

a. Price ceiling is the maximum price or ceiling so to speak imposed by government for a particular commodity inorder to relieve purchase burden from the consumers.

b. Take note of the price ceiling in the graph attached.

c. Number of demanded check-ups increases, since they are now more affordable.

d. Consumer surplus increase by $10, while the producer surplus decrease by $10 ($50-$40).

4 0

3 years ago