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Mars2501 [29]
3 years ago
14

The net decrease in Prepaid Expenses (Prepaid) amounts to $30,000 and the net decrease in Accounts Payable (AP) is $20,000. Assu

ming no inventory provision involved, what is the net effect of Inv and AP on the adjustments to Net Income if the indirect method is used in the Statement of Cash Flows
Business
1 answer:
tester [92]3 years ago
7 0

Answer:

Net decrease in prepaid expenses of $30,000 will be added to the net income in adjustments to net income because it will be considered that working capital (inventory or any other expense) has been generated by the operations.

Net decrease in Accounts payable of $20,000 will be deducted from net income in adjustments to net income because decrease in accounts payable means that cash has been paid to the outstanding payables.

Net effect of the above transactions is $30,000 - $20,000 = $10,000

So, net income will be increased by $10,000 as net effect of the above adjustments.

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What is the economic term used for sustained increase in the price of goods and services? inflation depression recession deflati
MakcuM [25]
Well depression and deflation and recession are when prices go down. So it is not them. Inflation is when the price raises because of supply and demand. So the correct answer is Inflation.
6 0
4 years ago
Read 2 more answers
A landlord is renting out an apartment and has three prospective tenants. The first tenant is willing to pay $1200/month, the se
lord [1]

Answer:

d. A fixed price of $2200/month.

Explanation:

A landlord is an owner of the house or property which is rented to a person called Tenant on lease or rent. The landlord in the question is renting an apartment. He has 3 Potential Tenants who are willing to rent his property. The greatest revenue will be generated if the apartment is rent out to the second tenant who is willing to pay $3000 per month. The revenue of the landlord will maximize if he uses option D to rent out his apartment. A fixed price of $2200 will generate greatest revenue.

4 0
4 years ago
in a perpetual inventory system, the amount of the discount allowed for paying for merchandise purchased within the discount per
irinina [24]

Answer:

Inventory (A)

5 0
3 years ago
1. Why is running a Website typically lesa<br> expensive than running a storefront business?
WITCHER [35]

Answer:

storefront businesses mean electricity bills, water bills, employee payments, while a website you usually pay one fee and get paid.

3 0
3 years ago
A corporate bond matures on October 31, 2035. Its coupon rate is 5.00% and face value is $100. Its yield is 5.90%. How much is i
zvonat [6]

Answer:

Its price on June 3, 2020 is $90.70.

Explanation:

The price of the Bond is its Present Value (PV) .

You need to determine first the number of years between June 3, 2020 and October 31, 2035. Draw a timeline to be accurate. There are 16 years and 5 months.

Next, we can calculate the price using time value of money techniques.

N = 16.4

PMT = $100 × 5.00% = $5

P/Yr = 1

FV = $100

IRR = 5.90%

PV = ?

Using a Financial calculator to input the values as above, the price of Bond on June 3, 2020 is $90.70.

6 0
3 years ago
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