When the operating activities section starts with net earnings, why is depreciation added to derive cash flow
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
Amortization is added in deriving cash flow from op...View the full answer
Answered By
Dorcas Juliet
I am a proficient tutor and writer with over 4 years experience, I can deliver A+ works in all fields related to business and economics subject. Kindly hire me for excellent papers
4.70+
10+ Reviews
51+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Question Posted:
Students also viewed these Managerial Accounting questions
-
When using the indirect method, why is depreciation added back to the net income figure when computing cash flow from operations?
-
The operating activities section of Johann Manufacturing Ltd.s statement of cash flows is shown below. In answering the questions after the statement, assume that the net cash flows from Johanns...
-
The Operating Activities section of Washburn Company's 2012 statement of cash flows reported an adjustment for a gain on the retirement of bonds of $5,000. The Financing Activities section of the...
-
The Shannon Township Debt Service Fund accumulates resources to pay its $2 million general obligation debt. The debt is payable in equal annual installments of principal over 10 years with 5%...
-
How could Maslows motive hierarchy be used to develop marketing strategy for the following? a) American Bird Conservancy, b) Redkin shampoo, c) Purell hand sanitizer, d) Chipotle Mexican Grill, e)...
-
Show that if are as given by Eq. (11.8.19), then for i = 1, . . . , I, Also, show that this covariance is 0 if all Kij are the same. Cov () = 112
-
Antibiotics in Infancy and Obesity in Adults "Antibiotics in infancy may cause obesity in adults," claims a recent headline. A study in mice randomly assigned infant mice to either be given...
-
After the partnership has been operating for a year, the Capital accounts of Martin and Steven are $30,000 and $20,000, respectively. Sania buys a one-sixth interest in the partnership by investing...
-
Greg Thomas purchased one - half of Ian Hamilton s interest in the Freidman and Hamilton partnership for $ 4 9 , 5 0 0 . Prior to the investment, land was revalued to a market value of $ 1 8 9 , 2 0...
-
Given a depletion-type MOSFET with IDSS = 6 mA and VP = -3 V, determine the drain current at VGS = - 1, 0, 1, and 2 V. Compare the difference in current levels between - 1 V and 0V with the...
-
How does cash from operating activities differ from net earnings?
-
Why is the change in the balance of accounts receivable included in the SCF?
-
A recent study found that 30% of the travelling public said that their flight selections are influenced by perceptions of airline safety. Thirty-nine percent of the travelling public want to know the...
-
State the advantages of gaseous fuels over solid and liquid fuels.
-
What are \(L P G\) and \(C N G\) ?
-
Explain the working of a solar flat collector.
-
List various liquid fuels. State their merits over solid fuels.
-
For each of the following companies, specify whether the company would be more likely to use job costing or process costing. a. Yacht builder b. Cereal manufacturer c. Landscaper d. Pet food...
-
The entrepreneurial mindset includes ________. A. A willingness to develop ideas that are not always initially popular B. A willingness to wait for an idea to become popular before moving forward...
-
The baseball player A hits the ball from a height of 3.36 ft with an initial velocity of 34.8 ft/s. 0.14 seconds after the ball is hit, player B who is standing 15 ft away from home plate begins to...
-
Which fuels are used for running automobiles? (a) Wood (c) Diesel (b) Coal (d) Charcoal
-
Loveless Corporation had the following 2010 income statement. Revenues............................$100,000 Expenses.................................60,000...
-
Hendrickson Corporation reported net income of $50,000 in 2010. Depreciation expense was $17,000. The following working capital accounts changed. Accounts...
-
In 2010, Wild Corporation reported a net loss of $70,000. Wilds only net income adjustments were depreciation expense $81,000, and increase in accounts receivable $8,100. Compute Wilds net cash...
-
A 1 kg metal block is heated to 200 C and then dropped into a thermally isolated container with 4 kg of water and 100 gr of ice both at a temperature of 0 C. If the specific heat of water is cw=4186...
-
Why are both ER Diagrams and Relational Modeling needed when a database system is developed?
-
Which data model provides a user with the best "program-data independence"? A. Hierarchial Model B. Network Model C. Relational Model D. Entity Relationship Model Why?
Study smarter with the SolutionInn App