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gregori [183]
4 years ago
6

Net income for the year for Carrie, Inc. was $750,000, but the statement of cash flows reports that net cash provided by operati

ng activities was $860,000. What might account for the difference?
Business
1 answer:
dybincka [34]4 years ago
3 0

Answer:

The difference might relate to depreciation, loss on sale of fixed assets, or change in working capital.

Explanation:

The net cash flow from operating activities is calculated after adding and deducting certain items and adjustments to net income to get operating cash flow.

First of all, the gains or losses from sale of fixed assets are adjusted, losses are added back and gains are deducted, to get income from operations.

All the non cash transactions that is unrealized gains or losses are eliminated.

Depreciation being non cash is added back.

All the changes in working capital is adjusted.

Increase in value of current assets are deducted, decrease in value of current assets are added, increase in current liability is added and decrease in current liabilities is deducted.

Thus, after all these adjustments the cash flow from operating activities is calculated.

In the given instance also, the difference might relate to depreciation, loss on sale of fixed assets, or change in working capital.

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inventory Turnover and Days' Sales in Inventory The following financial statement data for years ending December 31 for Holland
Varvara68 [4.7K]

Answer:

                                            Year 2014           Year 2013

a) Inventory Turnover ratio 3.4 times  and   3.1 times

b) Number of days' sales in inventory 107.3 days and  117.7 days

Explanation:

As per the data given in the question,

As we know that

Inventory turnover ratio = Cost of goods sold ÷ Average inventory

where,

Average inventory

= (Beginning inventory + ending inventory) ÷ 2

For Year 20Y4 :

Average inventory = ($359,160 + $516,840 ) ÷2

= $438,000

And, the cost of goods sold is $1,489,200

So,

Inventory Turnover ratio

= $1,489,200 ÷ $438,000

= 3.4 times

For Year 20Y3 :

Average inventory = ($251,120 + $359,160) ÷ 2

= $305,140

And, the cost of goods sold is $945,934

So,

Inventory Turnover ratio

= $945,934 ÷ $305,140

= 3.1 times

Now

Number of days' sales in inventory = Number of days in a year ÷ Inventory Turnover ratio

For 20Y4

= 365 days ÷ 3.4

= 107.3 days

For 20Y3

= 365 days ÷ 3.1

= 117.7 days

Basically we applied the above formulas

4 0
4 years ago
An employee who has integrity is
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Integrity is the act of behaving honorably, even when no one is watching. ... Employers who are committed to hiring employees with integrity are better equipped to provide high-quality service and maintain a positive reputation. When employees have integrity, their managers can trust their team is working diligently.

4 0
3 years ago
Marketers often scan social media to learn more about what customers think. __________ is a technique in which data from a varie
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Answer:

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Sentimental expressions can be positive negative or neutral. For example a statement from a review: 'I really like their services, they make sure you are satisfied with your purchase.' Is an example of positive sentimental expression.

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<span>Derek's company was bidding on the construction of a new penguin display at a world-famous zoo. when putting together his bid, derek began by determining what the zoo would be willing to pay for the structure, and then subtracting a reasonable profit for the company. the result would be the cost of production. for example: if price to zoo = $6 million, and company profit margin = $2 million, the cost to produce cannot exceed $4 million. [$6 million - $2 million = $4 million.] the demand-based pricing strategy in this example is called target costing.

</span><span>Target costing is an approach to determine a product's life-cycle cost which should be sufficient to develop specified functionality and quality, while ensuring its desired profit. It involves setting a target cost by subtracting a desired profit margin from a competitive market price.</span>
7 0
3 years ago
Testing for goodwill impairment_______________.a. requires both qualitative and quantitative tests.b. requires computing implied
Amiraneli [1.4K]

Answer:

C. necessitates determining if the reporting unit itself is impaired after calculating implied goodwill.

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3 years ago
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