Explain why, under the indirect method, depreciation is added to the net income to calculate the cash
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (19 reviews)
Depreciation is added back to net income under the indirect method because we ar...View the full answer
Answered By
Kainat Shabbir
i am an experienced qualified expert with a long record of success helping clients overcome specific difficulties in information technology, business and arts greatly increasing their confidence in these topics. i am providing professional services in following concerns research papers, term papers, dissertation writing, book reports, biography writing, proofreading, editing, article critique, book review, coursework, c++, java, bootstarp, database.
5.00+
184+ Reviews
255+ Question Solved
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
Question Posted:
Students also viewed these Accounting questions
-
Explain why, under the indirect approach, depreciation is added to the net earnings to calculate the cash flow from operations. Is depreciation a source of cash, as this treatment seems to suggest?
-
Why do analysts compare cash flow from operations with earnings to assess the quality of the earnings?
-
Cash flow from operations was $700,000 for 2011 and $863,000 for 2012. Does this suggest that management of Great Oaks Furniture has manipulated earnings upward in these years? The following...
-
A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for...
-
Brian Brown, an executive at a manufacturing enterprise, comes to you on December 1 of the current year for tax advice. He has agreed to donate a small tract of land to the Rosepark Community...
-
Have I selected a topic for my strategic communication plan?
-
Superheated steam at \(250 \mathrm{psia}\) and \(500^{\circ} \mathrm{F}\) is compressed to \(350 \mathrm{psia}\). The isentropic efficiency of the compressor is \(70 \%\). For the compressor, compute...
-
Match the items in the following right column with those in the left column: 1. An act of Congress that gives a department and/ or agency authority to obligate the federal government to make...
-
Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Rounded Edge Direct materials Direct labor Overhead (using...
-
For the rotational mechanical system shown in Figure P2.18, find the transfer function G(s) = 2 (s)/T(s) 1 N-m/rad T(1t) O2(1) 1 kg-m2 1 N-m-s/rad 1 N-m-s/rad 1 N-m-s/rad FIGURE P2.18
-
Explain why it is important to a companys financial health to have a positive cash flow from operations.
-
In what section of the statement of cash flows (operating, financing, or investing) would each of the following items appear? a. Issuance of common shares to investors b. Payment of dividends to...
-
The financial statements of Apple are presented in Appendix D. The complete annual report, including the notes to the fi nancial statements, is available at the companys website. Instructions Refer...
-
How can performance management systems be used to identify and nurture high-potential talent within the organization ?
-
What is the process of capability assessment in an organization? Explain briefly
-
Bob, a customer service manager at a call center, prides himself on being able to "read" people. He says he can tell whether someone will make a good employee as soon as he meets them and "sizes"...
-
Identify the reason why many early social thinkers were concerned with social change.
-
Thoughts on Responding: Do you think evaluations are fair for both students and instructors? Do they or can they capture the performance properly? In what ways is your performance as a student...
-
How are equality and liberty related to justice? Which of these two interests (liberty or equality) is most important to your sense of fairness? Is it possible to achieve a fair balance between the...
-
PC Contractors, Inc., was an excavating business in Kansas City, Missouri. Union Bank made loans to PC, subject to a perfected security interest in its equipment and other assets, including...
-
The articles of incorporation of Curtis Airlines Co. authorized 5 million common shares. The company originally issued 3.75 million common shares. However, over the years the company had repurchased...
-
The shareholders equity of Henry Byce Ltd. at the end of 2020 and 2019 appeared as follows: Byce began operations in 2018. The 50,000 preferred shares issued have been outstanding since 2018. During...
-
Identify four types of transactions that would affect a companys shareholders equity.
-
Assume that you are the leadership team of a convenience store chain that has more than 300 outlets. The company is facing an inventory shrinkage problem, and store managers report that the main...
-
1 . An employee at Amy's candles has noticed that some order quantities in the two reports presented are different although the order numbers are the same. We normally refer to such data as dirty....
-
On Monday, April 5, 2010, just before 3:00 in the afternoon, miners at Massey Energy Corporation's Upper Big Branch coal mine in southern West Virginia were in the process of a routine shift change....
Study smarter with the SolutionInn App