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3 years ago

In preparing a statement of cash flows using the indirectmethod, the Depreciation Expense ________

Business

2 answers:

motikmotik3 years ago

8 0

Answer:B -

Explanation:Depreciation is added back as an adjustment to the net income in the operating activities section.

egoroff_w [7]3 years ago

5 0

Answer:

The correct answer is letter "B": is added back as an adjustment to Net Income in the operating activities section.

Explanation:

Since net income is a starting point for calculating cash flows from operating activities, depreciation costs must be added back to net income if the method being used is the indirect process. Therefore, depreciation spending is recorded in the cash flow statement.

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The objective section of a resume should consist of no more than:

Alona [7]

Answer:A

Explanation:

A p e x

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2 years ago

Lone Wolf Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The o

tigry1 [53]

Answer:

Differential analysis for 1 year

Keep old Change Differential

machine machine amount

sales revenue 191,000 191,000 0

depreciation expense -4,840 -22,760 -17,920

per year

direct materials -65,200 -65,200 0

direct labor -45,300 -15,100 30,200

power and -4,200 -7,200 -3,000

maintenance

taxes and -1,500 -5,000 -3,500

insurance

S&A expenses -45,300 -45,300 0

total 24,660 30,440 5,780

If the new machine is purchased, profits will increase by $5,780 every year.

Differential analysis for 5 years

Keep old Change Differential

machine machine amount

sales revenue 955,000 955,000 0

depreciation expense -24,200 -113,800 -89,600

per year

direct materials -326,000 -326,000 0

direct labor -226,500 -75,500 151,000

power and -21,000 -36,000 -15,000

maintenance

taxes and -7,500 -25,000 -17,500

insurance

S&A expenses -226,500 -226,500 0

total 123,300 152,200 28,900

If the new machine is purchased, profits will increase by $28,900 for the 5 year period.

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2 years ago

Assume that the market is perfectly competitive. If the cost function for John's Shoe Repair is �(�) = 100 + 10� − �) + 3 4 �4,

kirill [66]

Answer:

Explanation:

C(q) = 100+10q-q^2+(1/3)q^3

To find the firm marginal cost function:

Take the derivative with respect to q

MC = 10 - 2q + q^2

Assuming that the market price is p , then the profit maximising condition is:

MR = MC

p = 10 - 2q + q^2

The short-run supply curve is the marginal cost curve that lies above the average variable cost.

The average variable cost is:

AVC =VC/Q

AVC = (10q-q^2+(1/3)q^3)/Q

AVC = 10 - q + (1/3)*q^2

So, the short-run supply curve is:

SRS = 10 - 2q + q^2 if p > 10 - q + (1/3)*q^2

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3 years ago

Larkspur Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $104,800 to m

Lady_Fox [76]

Answer:

First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.

= Annuity * Present value interest factor of annuity due, 5 years, 7%.

= 37,400 * 4.3872

= $164,081

Date Account Details Debit Credit

Dec. 31, 2019 Lease Receivable $164,081

Cost of goods sold $104,800

Sales $164,081

Inventory $104,800

Date Account Details Debit Credit

Dec. 31, 2019 Cash $37,400

Lease Receivable $37,400

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2 years ago

g Which inventory costing method assigns to ending merchandise inventory the newestlong dashthe most recentlong dashcosts incurr

Lena [83]

Answer:

B. First-in, first-out (FIFO)

Explanation:

First-in, first-out (FIFO) is an accounting principle which refers to a process whereby assets that are purchased first are sold first. In this situation, the cost in which the particular inventory was purchased is still the same cost with which it is sold out.

First-in, first-out principle can be used to determine the profitability of a merchandise with its associated cost taken into consideration.

5 0

3 years ago

Read 2 more answers

In preparing a statement of cash flows using the indirect​method, the Depreciation Expense​ ________

In preparing a statement of cash flows using the indirectmethod, the Depreciation Expense ________