Question: Why would a decrease in accounts payable be shown as a decrease in cash when using the indirect method of calculating the cash flows from

Why would a decrease in accounts payable be shown as a decrease in cash when using the indirect method of calculating the cash flows from operating activities?

AppendixLO1

Step by Step Solution

★★★★★

3.44 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Financial Accounting 11th Questions!

531 a : The Statement of Cash Flows 531 Accounting Practice Discussion Questions 1. What are some of the reasons why a statement of cash flows may be important to users of financial statements? 2. A...

Why would a decrease in accounts payable be shown as a decrease in cash when using the indirect method of calculating the cash flows from operating activities?

Fitz Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Selected Year-End Balance Sheet Data $376,000 Accounts receivable decrease 46,800...

The following information is available from the current period financial statements: Net income $ 1 1 2 , 8 2 4 Depreciation expense $ 2 4 , 6 6 5 Increase in accounts receivable $ 1 7 , 6 2 9...

The following income statement and current sections of the balance sheet are for Capstone, Inc: Capstone, Inc. Income Statement For the year ended December 31, 2021 Sales $990,000 Cost of goods sold...

46. The statement of cash flows may be used by management to iquidity of the business b, assess the major policy decisions investments and financing d. determine dividend policy all of the 47....

17. The following information is available from the current period financial statements: $114,187 Net income 26,234 Depreciation expense 15,365 Increase in accounts receivable Decrease in accounts...

The following information is available from the current period financial statements: Net income $117,060 20,505 16,834 20,994 Depreciation expense Increase in accounts receivable Decrease in accounts...

On the cash flow statement, buying inventory on account is not a use of cash. True or False Most companies use the direct method to prepare the statement of cash flows. True or False A decrease in...

Portions of the financial statements for Horizon Telecom are provided below. HORTON TELECOM Income Statement For the year anded December 31, 2021 3619.000 Expenses Coat of poods sold 5368.000...

Figure 1 shows an 18 nm NMOS finFET switch. The slow regime ofcharge injection is valid for this circuit. Assume Vin = 0.5 V,nfin = 10 and CL = 20 fF. The body of the transistor is connectedto...

Use the following information to compute profit margin for each separate company a through e. Net Income Net Sales a. $ 4,361 .......$ 44,500 b. 97,706 ....... 398,800 c. 111,281....... 257,000 d....

The ingredients needed to create a pork dish is $4.56. Your net production cost is $3.33. You need to mark up the cost of the dish to a 30% profit margin. What does your profit margin total, and what...

Problems 4650 are multiple-choice questions designed to get you to begin thinking about computer use and abuse. One example of computer abuse is categorized as assuming that computers are largely...

SUPERVALU, one of the largest grocery retailers in the United States, is headquartered in Minneapolis. The following financial information (in millions) was taken from the companys 2010 annual...

Burden Inc. is considering these two alternatives to finance its construction of a new $2 million plant:(a) Issuance of 200,000 shares of common stock at the market price of $10 per share.(b)...

Daly Corporation has 200,000 shares of $10 par value common stock outstanding. It declares a 12% stock dividend on December 1 when the market value per share is $17. The dividend shares are issued on...

9 of 10 View Policies Show Attempt History Current Attempt in Progress 2.5/10 Lee Company manufactures a line of lightweight running shoes. CEO Brian Lee estimated that the company would incur...

Part B. (4 marks) A machine costing $180,000 has an estimated residual value of $15,000 and an estimated service life of ten years. What is the annual depreciation for each of the first two full...

10 The process of preparing Consolidated Financial Statements involves the elimination of inter-company transactions between a Parent Company and its subsidiary. Where would these entries be...