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
Citrus2011 [14]
2 years ago
15

Martinez, Inc. reported net income of $2.5 million in 2007. Depreciation for the year was $160,000, accounts receivable decrease

d $350,000, and accounts payable decreased $280,000. Compute net cash provided by operating activities using the indirect approach.which accounts do you add and which ones do you subtract?
Business
1 answer:
n200080 [17]2 years ago
8 0

Answer:

$2,730,000

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $2,500,000

Adjustment made:

Add : Depreciation expense $160,000

Add: Decrease in accounts receivable $350,000

Less: Decrease in accounts payable -$280,000

Total of Adjustments $230,000

Net Cash flow from Operating activities             $2,730,000

You might be interested in
The liquidity approach to measuring money defines the M2 money supply as A. near monies. B. currency plus travelers checks and c
tatiyna

Answer:

The correct answer is C. M1 plus near monies.

Explanation:

The liquidity approach emphasizes the role of money as a store of value and downplays the role it plays as a means of payment. To assess the amount of money emphasizes that the essentially distinctive property of money is that it is the most liquid of assets.

The strict money supply or circulating medium (M1), which defines money as the money in the hands of the public and demand deposits (DV) is the usual most accepted formula as money. Therefore, money in the strict sense is listed as such in the monetary statistics of the International Monetary Fund (IMF) and many other financial institutions around the world.

7 0
3 years ago
What is the expected cashflow of the company XYZ in year 1 if its EBIT in year 1 is $270,000, depreciation is $85,000, change in
vitfil [10]

Answer: b. 233,500

Explanation:

The expected cashflow is;

= (EBIT * (1 - tax) ) + Depreciation - change in net working capital - capital expenditure

= (270,000 * (1 - 25%)) + 85,000 - 19,000 - 35,000

= $‭233,500‬

3 0
2 years ago
1.
Annette [7]

Answer:

<em>under</em><em> </em><em>heal</em><em>th</em><em> </em><em>and</em><em> safety</em><em> </em><em>law</em>

Explanation:

The primary responsibility for this is down to employees workers have duty to take of their own health and safety.

4 0
2 years ago
An employer pays $90 of a $100 group disability premium, and the employee pays the other $10. The disability benefit under the p
geniusboy [140]

Answer:

the monthly benefit taxable income would be $900

Explanation:

For a Plan of $1,000/month if the employer pays $90 and the employee pays the other $10 of a $100 group disability premium.

after paying the total amount of  %100 according to the plan if the employee gets disabled then he will get 90% of the total amount which is taxable income.

5 0
3 years ago
Read 2 more answers
Factors affecting communication in a an organization
iVinArrow [24]

FACTORS AFFECTING COMMUNICATION

Status / Role.

Cultural differences .

Choice of communication channel .

Length of communication .

Use of language .

Individual Perceptions / Attitudes / Personal

3 0
2 years ago
Other questions:
  • Which word best describes the effects of income taxes as your income increases?
    12·1 answer
  • WHEN A TRAFFIC SIGNAL LIGHT IS NOT WORKING, YOU SHOULD:
    9·2 answers
  • Nick and Teresa are debating the pricing strategy of several airlines. Nick argues, "When airlines restrict discounted tickets t
    8·1 answer
  • Which of the following is an assumption of a special order decision? Group of answer choices The special order sales will not af
    8·1 answer
  • Suppose you are evaluating two mutually exclusive projects, A and B. Project A costs $350 and has cash flows of $250 and $250 in
    5·1 answer
  • If the superior's job with a particular employee during a performance appraisal is simply to sit and listen and then have open d
    15·1 answer
  • Peggy is in the business of factoring accounts receivable. Last year, she purchased a $30,000 account receivable for $25,000. Th
    6·1 answer
  • Acme industries, inc. is a family business founded by wile
    10·1 answer
  • Your firm has a bond issue with a face value of $250,000 outstanding. These bonds have a coupon rate of 7 percent, pay interest
    7·1 answer
  • Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hou
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!