Answer
Net income 177,200
+35230 depreciation
+4,920 loss on disposal
217,350 adjusted net income (a)
↑↓
↑AR -14,160
↑Prepaid -4,190
↑AP 17,220
Change in working Capital -1,130(b)
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<u>Cash Flow generated from operating activities 216,220</u>
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Explanation:
(a) we must remove the non-monetary account from the income statement
This means add the non-monetary expenses and losses
Subtract the non monetary revenue and gains
(b)
The increase in assets account have a negative meaning, because it is assumed the company used cash to adquire it.
Whiel increase in liabilities are positive, because the company receive aah or delay the payment of cash.
The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1
In this article, we'll show you how the CFS is structured, and how you can use it when analyzing a company.
KEY TAKEAWAYS
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.
The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1
The main components of the cash flow statement are cash from operating activities, cash from investing activities, and cash from financing activities.
The two methods of calculating cash flow are the direct method and the indirect method.
Answer: Option b
Explanation: In simple words, it refers to an arrangement under which one entity allows the other entity to use its procedures and brand name for the business in return of any loyalty or other such benefits.
In the given case, Gerald wants to operate his business globally and not eager to control all of it.
Hence from the above we can conclude that franchising is the best option for Gerald.
Divide the numbers on the first graph by 1’s and you get your answer
There are 4 jacks in the deck.
13 are clubs and 26 are all red cards.
The computation for the following problems are shown below:
a.
All are jacks
Computation: 4/52 * 3/51 * 2/50 = 1/5525
b.
All are clubs
Computation: 13/52 * 12/51 * 11/50 = 11/850
c.
All are red card
Computation: 26/52 * 25/51 * 24/50 = 2/17
