In the indirect method of presenting operating cash flows, why is net income adjusted for depreciation, depletion,
Question:
In the indirect method of presenting operating cash flows, why is net income adjusted for depreciation, depletion, and amortization?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (7 reviews)
In the indirect method of presenting operating cash flows net income is adjusted for depreciation de...View the full answer
Answered By
KELVIN MUCHIRI
I have experience teaching math, science, and English to students of all ages. I have also worked as a tutor in a college setting, helping students with their homework and preparing them for exams.
I believe that tutoring is a great way to help students learn. It allows students to get one-on-one help with their studies, and it gives them the chance to ask questions and get immediate feedback. Tutoring can also be tailored to the individual needs of the student, which is why I believe it is so effective.
I have seen firsthand how tutoring can help students improve their grades and confidence. I have also seen how it can help students who are struggling with a particular subject. I believe that tutoring is a great way to help students learn and succeed in school.
0.00
0 Reviews
10+ Question Solved
Related Book For
Introduction To AccountingAn Integrated Approach
ISBN: 9781119600107
8th Edition
Authors: Penne Ainsworth, Dan Deines
Question Posted:
Students also viewed these Business questions
-
Depreciation expense, amortization of patents, and amortization of bond discount are examples of items that are added to net income when using the indirect method of presenting cash flows from...
-
As discussed in the chapter, there are two methods for presenting the information in the operating activities section of the statement of cash flows: the direct method and the indirect method....
-
The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 1 Assets 2 Cash $183 $14 3 Accounts receivable (net) 55 49 4...
-
On January 1, 2018, Doctors Credit Union (DCU) issued 7%, 20-year bonds payable with face value of $200,000. The bonds pay interest on June 30 and December 31. Requirements 1. If the market interest...
-
Based on the graphs below, which stock has more systematic risk, and which stock has more unsystematic risk? Stock #1 -30 Merket return Stock #2 -30
-
Coronado Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Cost to Complete Item No. Quantity Cost per Unit Estimated Selling Price and Sell 1320 1,600...
-
Retelsdorf Ltd manufactures tablet screens. Recently, the company has been producing slightly below 75% of capacity and management is considering how to use currently unused plant capacity. One...
-
On July 1, 2011, Flashlight Corporation sold equipment it had recently purchased to an unaffiliated company for $480,000. The equipment had a book value on Flashlights books of $390,000 and a...
-
You have a light spring which obeys Hooke's law. This spring stretches 2.88 cm vertically when a 2.30 kg object is suspended from it. Determine the following. (a)the force constant of the spring (in...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
On March 1, 2019, Price Incorporated issued 10-year bonds with a face value of $600,000 and a face interest rate of 8 percent that was paid semiannually on March 1 and September 1. The bonds were...
-
Shoemaker Company purchased a machine on January 1, 2018, for $85,000 in cash. On June 30, 2019, Shoemaker sold the machine at a loss of $5,000. Depreciation on the machine for the first half of 2019...
-
Which of the following is not an example of a spontaneous mutation? a. A mutation caused by an error in DNA replication b. A mutation caused by a tautomeric shift c. A mutation caused by UV light d....
-
Suppose a firm developed the first drug capable of treating some disease in which no other treatment or cure is available. After which, the firm then acquired a patent for their drug to be the sole...
-
An unbanked (flat) curve of radius 150 m is rated for a maximum speed of 29.0 m/s. At what maximum speed, in m/s, should a flat curve with radius of 63.0 m be rated? 63 Consider the relationship...
-
3. A stationary box is kicked down a frictionless ramp. The foot applies a force of 13.5 N along the ramp for 0.250 s for negligible distance. (a) If the box leaves the foot with a velocity of 2.00...
-
Describe the four categories of the BCG Growth Share Matrix. Provide examples of two companies that fit into two different categories. (Example: Company ABC manufactures product x and Product x is a...
-
One of the alternatives under IFRS is that equipment used in manufacturing a company's product can be accounted for at its current market price (what the equipment could be sold for) rather than its...
-
Record the following selected transactions for March in a two-column journal, identifying each entry by letter: (a) Received $10,000 from Shirley Knowles, owner. (b) Purchased equipment for $35,000,...
-
Provincial Company is deciding which of three approaches it should use to apply overhead to products. Information for each approach is provided in the following. ¢ One plantwide rate. The...
-
Assume Fine Finishing, Inc., discussed in Problem 41, uses activity-based costing. Required: a. Using the data presented at the beginning of Problem 41, calculate the predetermined overhead rate for...
-
Downeyville Products, Inc., is deciding which of three approaches it should use to apply overhead to products. Information for each approach is provided as follows. ¢ One plantwide rate. The...
-
At the beginning of the year, Learer Company's manager estimated total direct labor cost to be $2,517,000. The manager also estimated the following overhead costs for the year. Indirect labor Rent on...
-
Luthan Company uses a plantwide predetermined overhead rate of $ 2 2 . 6 0 per direct labor - hour. This predetermined rate was based on a cost formula that estimated $ 2 7 1 , 2 0 0 of total...
-
Tesla has a capital structure of $75 million debt, $228 million equity, and $303 million in assets. Last year, the company reported a net income of $67 million. What is Tesla's return on equity?...
Study smarter with the SolutionInn App