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Savatey [412]
3 years ago
11

Using the Indirect Method to create the Statement of Cash Flows, which of the following options are correct in describing what m

ust be done to convert net income to operating cash flow? (Please select ALL that apply.)
a) A gain is subtracted from net income.

b) A loss is subtracted from net income.

c) Depreciation and amortization are subtracted from net income.

d) An increase in operating current assets is subtracted from net income.

e) A decrease in operating current liabilities is subtracted from net income.

f) A decrease in operating current assets is subtracted from net income.
Business
1 answer:
Gwar [14]3 years ago
8 0

Answer:

a) A gain is subtracted from net income.

d) An increase in operating current assets is subtracted from net income.

e) A decrease in operating current liabilities is subtracted from net income.

Explanation:

Operating activities: It involves those transactions that affect the after-net income working capital. It would subtract the rise in current assets and a decrease in current liabilities while add a decrease in current assets and an increase in current liabilities.  

It would modify those changes in working capital. For addition, the depreciation costs are added to the net income and the loss on the sale of assets is applied, while the gain on the sale of assets is excluded

So, the following options are used-

a) A gain is subtracted from net income.

d) An increase in operating current assets is subtracted from net income.

e) A decrease in operating current liabilities is subtracted from net income.

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Ben sold his townhome on March 12. The property is subject to an HOA fee of $355 per month, which Ben prepaid for the month of M
Dvinal [7]

Answer:

$213

Explanation:

For computing the owed amount, first we have to compute the daily rate per day which is shown below:

= HOA fee ÷ number of days in a month

= $355 ÷ 30 days

= 11.83 per day

We know that the number of days in a month is 30 days and the townhome is sold on March 12, so the remaining days would be 18 days ( 30 days - 12 days of march month)

Now the owed amount would be

= Remaining days × per day rate

= 18 days × 11.83

= $213

8 0
3 years ago
Which one of the following is most apt to create a situation where an agency conflict could arise?A. increasing the size of a fi
Doss [256]

Answer:

C. Separating Management from Ownership

Explanation:

What is Agency

The agency refers to contractural, quasi-contractual and non-contractual fiduciary relationships which represents two to three parties. The first is a person called the agent, the second is the principal and the final is a third party. Agency authorizes an agent to act on behalf of the principal and create binding relatinships with a third party.

Agency Conflict

Agency conflict represents a conflict of interest which is unavoidable in an agency relationship where one party is to act in the best interest of the other party. Specifically, in the business or corporate settings, the agency conflict arises when there is a conflict of interest between an organisation's management and the owners of the organisation.

The challenge is that management who is the agent is expected at all times to make decisions that will constantly maximize the wealth of the owners and at times, these decisions would conflict with management's ability to maximize its own wealth

Therefore, once the management of an organisation is separated from ownership especially in a Management/ shareholders relationship, an agency conflict could arise.

6 0
2 years ago
Read 2 more answers
The first entry to liquidate a partnership would probably include
Lorico [155]
Property will not added when it liquidate
8 0
3 years ago
Read 2 more answers
In an​ emergency, you used your credit card for a​ $500 cash advance. You just received your statement and your total balance du
zhenek [66]

Answer:

The yearly annual interest expense would be $139.08

Explanation:

As per the question total advance amounted to $1,859 including the recent cash advance of $500. However, you intend to make payment of $700. Therefore, total advance stands at $1,159 ($1,859-$700) and 12% APR will be applied on the same amount i.e $1,159*12% = $139.08

7 0
3 years ago
Read 2 more answers
Martinez Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related va
Reptile [31]

Answer:

2020  $11,700

2021  $8,080

2022  $14,040

Explanation:

PBO = Projected benefit Obligation

PA =  Plan Asset

Acc. OCI  = Accumulated OCI Gain /  Loss

Min. Amort loss = Minimum Amortization of Loss

Year : PBO ; PA ; Corridor 10% ; Acc. OCI ;  Min. Amort loss

2019 : $2,340,000 ;  $2,223,000 ;  $234,000

2020 : $2,808,000 ;  $2,925,000 ;  $280,800 ;  $397,800 ; 11,700

2021 :  $3,451,500 ;  $3,042,000 ;  $345,150 ;  $264,350 ; 8,080

2022 :  $4,212,000 ;  $3,510,000 ;  $421,200 ;  $280,800 ; 14,040

6 0
3 years ago
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