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natali 33 [55]
2 years ago
12

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted

from net income to compute cash provided by/used by operating activities?
Business
1 answer:
Gelneren [198K]2 years ago
5 0

Answer:

Explanation: Under the indirect method of cash flow statement, we have the Operating section, which has the following deductions to get the value of cash used by operating activities.

The include:

1. Increase in Accounts receivable

2. Increase in Interest receivable

3. Increase in Inventory

4. Increase in prepaid expenses

5. Gain on sale of Investment

6. Decrease in accrued liabilities

7. Decrease in accounts payable

All the above listed points are deducted from the net cash flow under the operating section to arrive at the cash provided by.

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If the price elasticity of demand for a product is 2. 5, then a price cut from $2. 00 to $1. 60 will:_______
hoa [83]

Increase the quantity demanded by about 25 percent.

<h3>What is the short definition of price elasticity?</h3>
  • Price elasticity in business and economics refers to how much people, consumers, or producers alter their demand or the quantity supplied in reaction to changes in price or income.
  • It is mostly used to evaluate how consumer demand has changed as a result of a price change for a good or service.
<h3>What are some examples of price elasticity of demand?</h3>
  • When a price increase results in a greater percentage reduction in demand, we say a good is price elastic.
  • For instance, if price increases 20% and demand declines 50%, the PED equals -2.5. One illustration is Heinz soup. Heinz soup options are plenty today.

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3 0
1 year ago
Which of the following statements are true regarding dividends? (You may select more than one answer. Single click the box with
seropon [69]

Answer:

The options that are true regarding dividends include:

  1. A stock dividend increases the number of outstanding shares.
  2. A stock dividend commonly indicates management's confidence that the company is doing well.

Explanation:

A stock dividend is a payment to shareholders that is made in shares rather than in cash.

Once investors receive stock dividends, the number of their shares will increase. this validates the first statement

Secondly, stock dividends have a tax advantage for the investor. The share dividend, like any stock share, is not taxed until the investor sells it unless the company offers the option of taking the dividend as cash or in stock.

The stock dividend has the advantage of rewarding shareholders without reducing the company's cash balance thereby indicating management's confidence in the company is well-being.

3 0
3 years ago
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What is the number of times preferred dividends were earned for the following data? Total current liabilities (noninterest beari
Alekssandra [29.7K]

Answer:

Times preferred dividends eared: 7.08333

Explanation:

income before taxes - taxes = net income

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preferred dividends:

outstanding preferred shares x yield

$ 240,000 x 6% = $14,400

Times dividends earned:

102,000 / 14,400  = 7.08333333333

6 0
3 years ago
Freya wants to use her debit card to purchase a $135 tablet computer. What must Freya consider before using her debit card? Chec
Tcecarenko [31]
She must me sure that she has at least $135 in her bank check and automatic payments. She shouldn't check the interest rate because debit cards don't carry a balance and there is no monthly payments.
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2 years ago
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On 12/31/X4, Zoom, LLC reported a $60,000 loss on its books. The items included in the loss computation were $30,000 in sales re
slavikrds [6]

Answer:

-10.000

Explanation:

within the ordinary result, those income and expenses that respond to the  normal and ordinary turn of the company, without considering those of an exceptional or unique nature, or related to operations that do not represent the aforementioned,

In this case the ordinary result is

$30,000 in sales revenue ORDINARY

$15,000 in qualified dividends ORDINARY(

If you want to know the exclusively operational result, these will not be considered.)

$22,000 in cost of goods sold ORDINARY

, $50,000 charitable contribution EXTRAORDINARY

$20,000 in employee wages ORDINARY

$13,000 of rent expense ORDINARY

= 30.000+15.000 - 22.000-20.000-13.000= -10.000

4 0
3 years ago
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