1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Diano4ka-milaya [45]
3 years ago
15

Determining Net Cash Flow from Operating Activities: Burch Company reported the following items in its balance sheet and income

statement: increase in cash account, $20,000; increase in accounts receivable, $5,000; increase in inventory, $20,000; increase in accounts payable, $10,000; decrease in income taxes payable, $1,000; net income, $70,000; depreciation expense, $25,000. Required: Compute the net cash flows from operating activities using the indirect method.
Business
1 answer:
Tanya [424]3 years ago
3 0

Answer:

$9,000

Explanation:

The cash flow statement is the financial statement where the cash flows from the various activities of a business are recorded. These activities include Operating, Investing and Financing. The statement may be shown using gthe direct or indirect method.

The operating activities include the changes to current assets and liabilities. Increases in assets (apart from cash) represents an out flow of cash while increases in liability represents and in flow of cash and vice versa.

The net cash flows from operating activities using the indirect method

= -5000 - 20,000  + 10,000 + 25,000 - 1,000 (all amounts in $)

= $9,000

This represents a net inflow.

You might be interested in
The balance of​ Morgan, Capital at the beginning of the year and the end of the year was $ 45,000 and $ 70,000​, respectively. T
Anna35 [415]

Answer:

$48,000

Explanation:

Given that,

Ending owner's equity = $70,000

Beginning owner's equity = $45,000

Owner's withdrawals = $23,000

There were no new capital contributions during the year.

Net income (loss):

= Ending owner's equity - Beginning owner's equity + Owner's withdrawals

= $ 70,000 - $ 45,000 + $ 23,000

= $48,000

Therefore, the net income for the year is $48,000.

6 0
3 years ago
Which responsibility is an important function of the sales and marketing team?
Colt1911 [192]
I think the most appropriate answer would be C.


I hope it helped you!
5 0
3 years ago
Features, Advantages and disadvantages free market economy?
Tems11 [23]

Answer:

Advantage: Absence of Red Tape.

Advantage: Freedom to Innovate.

Advantage: Customers Drive Choices.

Disadvantage: Limited Product Ranges.

Disadvantage: Dangers of Profit Motive.

Disadvantage: Market Failures

Explanation:

hope it helped some :)

6 0
3 years ago
Northwestern Data Systems has adopted a new organizational approach with regard to information flow, ensuring that employees hav
bija089 [108]

Answer:

neither she nor her supervisor has any demonstrable reason to access such information.

Explanation:

When security measures are introduced in information system access in an organisation, an individual is limited to only a defined set of data.

Access to data outside one's normal job role requires a request for addition of such access.

In the given instance Northwestern Data Systems has adopted a new organizational approach that ensures employees have access to the only data they need.

Stacy, an administrative assistant requests a report regarding disciplinary action on a manager outside her department.

She will not be able to get it because she should normally not be able to discipline a manager.

So she can't access it because neither she nor her supervisor has any demonstrable reason to access such information.

3 0
2 years ago
South Tel Communications is considering the purchase of a new software management system. The system is called B-lmage, and it i
gavmur [86]

Answer:

Explanation:

South Tel Communications is considering the purchase of a new software management system. The system is called B-image, and it is expected to drastically reduce the amount of time that company technicians spend installing new software. South Tel's technicians currently spend 6,000 hours per year on installation which cost South Tel $25 per hour. The owners of the B-image system claim that their software can reduce time on task by at least 25%. The system requires an initial investment of $55,000 and an additional investment of$10,000 for technician training on the new system. Annual upgrades will cost the firm $15,000 per year. Because the investment is comprised of software, it can be fully expensed in the year of the expenditure (no depreciation). South Tel faces a 30% tax rate and uses a 9% cost of capital to evaluate projects of this type.

A. Assuming that South Tel has sufficient taxable income from other projects so that it can immediately expense the cost of the software, what are the free cash flows for the project for years zero through five?

Total (65,000)

Cash flow year 1 - 5

Saving on installations per year 450,000

Less: Annual upgrades ( 15,000)

Total 435,000

Less: Tax (30%) (130,500);

Total project free cash flow 304,500.answer

4 0
3 years ago
Other questions:
  • On August 1, 2018, Trico Technologies, an aeronautic electronics company, borrows $20.0 million cash to expand operations. The l
    12·1 answer
  • Inferring Transactions from Financial Statements
    9·1 answer
  • You want to show the stock price of a company over the last 6 months. What type of chart would be best for this purpose?
    9·1 answer
  • The moral case for why a company should actively promote the betterment of society and act in a manner benefitting all its stake
    9·1 answer
  • Assume there is no leakage from the banking system and that all commercial banks are loaned up. Suppose the reserve ratio is 25%
    6·1 answer
  • What is a means exam?
    8·2 answers
  • What is market segmentation? Dividing people into common groups based on Zip Code. Grouping products into distinct categories ba
    9·1 answer
  • Suppose you earn $40,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 10 percent, r
    8·1 answer
  • The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The
    12·1 answer
  • company leaders expect advertising agencies to produce tangible outcomes with an increasing emphasis on ______.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!