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
puteri [66]
3 years ago
10

When the operating activities section of the statement of cash flows is reported using the direct method: Multiple Choice Footno

tes to the financial statements disclose the difference between net income and the cash provided or used by financing activities. Noncash investing and financing activities is included in the statement of cash flows. Operating cash receipts minus operating cash payments equals net cash provided (used by)operating activities. Net income is adjusted for changes in noncurrent assets and noncurrent liabilities. The income statement is prepared under the cash basis of accounting.
Business
1 answer:
sp2606 [1]3 years ago
4 0

Answer:

Operating cash receipts minus operating cash payments equals net cash provided (used by) operating activities.

Explanation:

A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.

The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;

1. Cash-flow from financing activities: it represents the cash flow from debt or equity. Typically, it's the costs used in a financing a business.

2. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments, etc.

3. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods, etc.

In Financial accounting, the direct method of reporting operating cash flows uses actual cash inflows and outflows from the operating activities of a company by generating data from the income statement (cash receipts and cash disbursements/payments).

Hence, when the operating activities section of the statement of cash flows is reported using the direct method; operating cash receipts minus operating cash payments (disbursements) equals net cash provided, that is typically used by operating activities.

You might be interested in
The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate
myrzilka [38]

Answer:

The average rate of return of this investment is <u>8%</u>.

Note: Based on the information provided in the question, the average rate of return of this investment is <u>8%</u> but it is not included in the option. Kindly confirm this from your teacher.

Explanation:

Note: The data in the question are merged and they therefore first sorted before answering the question as follows:

Year         Income from Operations             Net Cash Flow

  1                          $100,000                               $180,000

  2                             40,000                                 120,000

  3                             40,000                                 100,000

  4                              10,000                                  90,000

  5                              10,000                                 120,000

The explanations to the answer is now given as follows:

Calculation of the average rate of return for this investment

Average rate of return (ARR) is a financial ratio that is used to determine the rate of return that is expected from an asset over its lifetime. ARR is calculated as the total income from the assets divided by the initial investment on the assets.

The average rate of return for this investment can be calculated as follows:

Total income form operations over five years = $100,000 + $40,000 + $40,000 $ $10,000 + $10,000 = $200,000

Average income = Total income form operations over five years / Number of years = $200,000 / 5 = $40,000

Average rate of return for this investment = Average income / Cost of Machine = $40,000 / $490,000 = 0.08, or 8%

Therefore, the average rate of return is <u>8%</u>.

6 0
3 years ago
A stock is expected to pay $ 1.10 per share every year indefinitely and the equity cost of capital for the company is 8.4​%. Wha
Marina CMI [18]

Answer:

$13.06

Explanation:

Data provided in the question

Expected dividend pay every year  = $1.10

And the equity cost of capital is 8.4%

So, the price expected to pay per share ten years in future is

= Expected dividend pay every year ÷ the equity cost of capital

= $1.10 ÷ 8.4%

= $13.06

By dividing the expected dividend by the equity cost of capital we can get the price

5 0
2 years ago
Comic books originally published in japan​
Semmy [17]

Answer:

not only Japan but also other country but most of the comic book are from japan

6 0
3 years ago
When the allocation of goods and services by a modern mixed economy is not efficient,
maks197457 [2]
Hey there!

Governements may step in to resolve the market failure is the answer to your question

Have a great day! :)
6 0
3 years ago
Orlando has a bank statement balance of $414.25 and $5.90 service charge. His check register shows $374.16 and he has two outsta
laiz [17]

Answer:

$365.93

Explanation:

The computation of the checkbook balance is shown below:

= Balance of bank statement - first outstanding check amount - second outstanding check amount          

= $414.25 - $26.54 - $21.78

= $365.93

In order to determine the check book balance, we deducted the two outstanding checks from the bank statement balance

6 0
3 years ago
Other questions:
  • 5 Examples of fiscal policy
    8·1 answer
  • Neil places an advertisement for his pastry shop, Neil's Pastries, in the local newspaper. He includes his phone number, website
    11·1 answer
  • Technician A says that many oil pumps are driven directly off the front of the crankshaft. Technician B says that others are dri
    6·1 answer
  • Problem page at a sale this week, a desk is being sold for $228.80 . this is a 74% discount from the original price. what is the
    6·1 answer
  • The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate
    8·1 answer
  • Which of the following should you do before taking the PSAT?
    13·2 answers
  • Intro to Investing Math Quiz
    5·1 answer
  • The amount of joint costs allocated to product DBB-1 using the sales value at split-off method is (calculate all ratios and perc
    10·1 answer
  • The three main methods that can be used to achieve the efficient use of a common resource are:___________.
    10·1 answer
  • How can professional assist school leavers to be successful business owners
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!