1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jek_recluse [69]
3 years ago
11

Company AA had net income of $20,000 in 2017. Compared to previous year, Accounts Receivable decreased by $10,000, Prepaid Rent

increased by $1,000, Accounts Payable decreased by $1,000. Finally, their depreciation for 2017 was recorded as $5,000. Compute net cash provided by operating activities.
Business
1 answer:
marin [14]3 years ago
7 0

Answer: The net cash provided by operating activities is $33,000.

Explanation: The amount above was arrived at by computing the following:

Company AA

Statement of Cash Flows for the Year 2017

Net income                                                            $20,000

Add depreciation:                                                      5,000

Decrease in Accounts receivable                           10,000

Increase in Prepaid rent                                           (1,000)

Decrease in Accounts payable                                (1,000)

Net cash flows from operating activities            $33,000

Please note the following:

  • Depreciation was added back because it is non-cash item
  • Decrease in accounts receivable represents cash inflow
  • Increase in prepaid rent represents an outflow of cash
  • Decrease in accounts payable represents cash outflow

You might be interested in
Actions taken by governments in order to promote the use of their own resources include all of the following EXCEPT:
timama [110]
It's C


I hope it helped you!
8 0
3 years ago
Should companies be held accountable for actions of decades past, then legal but since made illegal, as their harmful effects be
marishachu [46]

Answer:

No they should not be held accountable.

Explanation:

When the actions were taken in the past it was legal, now that it is illegal the companies should not be held accountable. If they are it will set a bad precedent that will affect a lot of companies.

In the case of GE that did experiments on prisoners to test effects of irradiation however, even if criminal charges are not brought against them, they can face charges. What they did was wrong even if it was legal then.

7 0
3 years ago
On September 1, ABC Company borrowed $50,000 on a 6%, 9-month note payable to XYZ National Bank. Given no previous adjusting ent
scZoUnD [109]

Answer:

c. debit to Interest Expense of $1,000.

Explanation:

The adjusting entry is as follows:

Interest expense Dr ($50,000 × 6% × 4 months ÷ 12 months) $1,000

     To Interest payable $1,000

(Being the interest expense is recorded)

Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liabilities

Therefore the correct option is c.

7 0
3 years ago
If a contract involves a significant financing component:____________.
Pavel [41]

Answer:

The time value of money is used to determine the fair value of the transaction ( B )

Explanation:

If a contract involves a significant financing component the time value of money is used to determine the fair value of the transaction and this is because the time value of money states that the money at hand ( available money ) is worth more than the identical sum of money in the future due to the earning capacity of the money.

therefore a contract involving a significant financing component ( present monetary component ) would have its fair value determined by the time value of money

7 0
3 years ago
Read 2 more answers
If Dennis can pay a police officer off so that he does not get a speeding ticket, he is most likely in what type of culture?
Ghella [55]
What are the answer choices
3 0
3 years ago
Read 2 more answers
Other questions:
  • Whatever the quality improvement approach, what key concept(s) is/are common between each approach?
    11·1 answer
  • Mica buys "Nature," a movie, through Open View, an online entertainment vendor. Before completing the purchase and downloading "
    6·1 answer
  • In the Uniform Commercial Code, negotiable instruments are all of the following EXCEPT
    15·1 answer
  • The net income reported on the income statement for the current year was $250,000. Depreciation recorded on fixed assets and amo
    12·1 answer
  • What is the function of product and service management​
    11·1 answer
  • Which term describes the cost to replace property minus the deduction for depreciation?
    5·1 answer
  • Bill and Fred bake cookies and pies. Bill's opportunity cost of baking 1 pie is 5 cookies. Fred's opportunity cost of baking 1 p
    9·1 answer
  • Hide or show questions Progress:10/40 items Roman Industries' plant operates five days per week with a daily payroll of $6,000.
    12·1 answer
  • Matt knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To ac
    12·1 answer
  • assuming that prices rise over time, which inventory cost flow assumption will result in the lowest cost of goods sold?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!