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jok3333 [9.3K]
3 years ago
11

Regarding the direct and indirect methods of preparing the statement of cash​ flows, which of the following statements is​ true?

A. The indirect method and the direct method will produce a different amount of net cash provided by investing activities. B. The indirect method starts with net income and adjusts it to net cash provided by​ (used for) operating activities. C. The direct and indirect methods include different types of cash flows in the investing activities section. D. The indirect method includes all​ non-cash activities, whereas the direct method includes only the cash activities
Business
1 answer:
Anastaziya [24]3 years ago
3 0

Answer:

B. The indirect method starts with net income and adjusts it to net cash provided by​ (used for) operating activities.

Explanation:

The cash flow statement shows the entire cash flow for the period in consideration, generally a financial year.

This statement is divided in three parts: Operating, Investing and Financing.

There are two methods to prepare the cash flow statement: Direct Method and Indirect Method.

There is no difference in reporting investing and financing activity, whereas the operating activities are reported in different manners.

Under indirect method, the net income is adjusted to calculate the operating cash flow, all the transactions which are non cash or do not relate to operating activities.

Thus, statement B is correct.

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Geoffco's project manager names three individuals and requests a project budget of $3,000,000 for the new 8-Pod, a backpack-size
11111nata11111 [884]

Answer:

B) conceptualization

Explanation:

Conceptualization -

It is the phase of the life cycle of project , where the capability to give an idea or concept is considered .

This phase is the very first phase for the life cycle of the project , where all the initial steps are taken to start the project .

Hence , from the question ,  

the project manger of the Geoffco company , assign three individual the a task to perform .

Therefore , the correct term for the given statement is B) conceptualization .

6 0
3 years ago
Calculating Economic Value Added East Mullett Manufacturing earned operating income last year as shown in the following income s
Serjik [45]

Answer:

$14,880

Explanation:

The formula to compute EVA is shown below:

= Net operating income or earnings after taxes - (Total capital employed × cost)

= $45,360 - ($381,000 × 8%)

= $45,360 - $30,480

= $14,880

We simply applied the economic value added formula so that the accurate value can come.

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
Prepare the cost of goods sold section of the income statement at December 31, 2017, for each company in Merchandising Business
Lady bird [3.3K]

Answer: (a) $325,000

(b) $1,150,000

Explanation:

(a) For Music world retail:

Cost of goods sold = Goods available for sale - Ending merchandise inventory

                                = (Beginning merchandise inventory + Cost of purchases) - Ending merchandise inventory

                                = ($200,000 + $300,000) - $175,000

                                = $500,000 - $175,000

                                = $325,000

(b) For Wave-Board Manufacturing:

Cost of goods sold = Goods available for sale - Ending finished goods inventory

                               = (Beginning finished goods inventory +  Cost of goods manufactured) - Ending finished goods inventory

                                = ($500,000 + $875,000) - $225,000

                                = $1,150,000

8 0
4 years ago
in three to four sentences, explain why you are willing to supply the most bicycles at the highest price.
Leni [432]
Because you can buy more bikes with the amount of money you make, hense the art of making a business also an entrepenuer
7 0
4 years ago
Phipps Company borrowed $25,000 cash on October 1, 2016, and signed a nine-month, 8% interest-bearing note payable with interest
anzhelika [568]

Answer:

The correct option is C,$500

Explanation:

The amount of interest accrual is the interest on the sum borrowed from October 1 2016 to 31 December 2016,that is 3 months of interest,which is computed below:

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principal is $25,000

stated interest is 8%

number of accrued months is 3

accrued interest =$25,000*8%*3/12=$500

The accrued interest is to be debited interest expense  because it is an increase in expense  and credited to interest payable as a liability

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