If accounts receivable had a debit balance of $10,000 at the beginning of the period, and a debit balance of $6,000 at the end of the period. based on this information, the adjustment to net income for the period will be reported as: a decrease of $4,000 which will be added to net income.
<h3>How to find the
adjustment to net income?</h3>
Using this formula to determine the adjustment to net income
Adjustment to net income = accounts receivable had a debit balance - Beginning debit balance
Where:
Accounts receivable had a debit balance = $10,000
Beginning debt balance = $6,000
Let plug in the formula
Adjustment to net income = $10,000 - $6,000
Adjustment to net income = $4,000
Therefore we can conclude that the adjustment to net income for the period will be reported as a decrease of $4,000 which will be added to net income.
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Answer:
The answer is A. cash and short-term investments by daily cash operating expenses
Explanation:
This is calculated as follows:
cash and short-term investments(cash equivalents) ÷ daily cash operating expenses.
Cash equivalents are very short-term securities. They are very liquid and can be converted to cash very quickly. Examples are bank accounts short-term securities like treasury bills.
Days cash on hand is the number of days that a firm can afford to pay its operating expenses, given the amount of cash available.
Answer:
Net cash provided by operating activities is $325,000.
Explanation:
Lacey Company
Cash Flow Statement (Operating Activities Only)
December 31, 2022.
<u>Details Amount ($)</u>
Net Income 310,000
Depreciation expense 45,000
Increase in accounts receivable (55,000)
Decrease in inventory 12,000
Increase in accounts payable 6,000
Increase in prepaid expenses (4,000)
Decrease in income taxes payable 3,500
Gain on disposal of land <u> 7,500 </u>
Net cash provided (used) by operating activities <u> 325,000 </u>
