Question: A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its December 31, 2009 financial statements.

A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its December 31, 2009 financial statements. 'Relates solely to the acquisition of inventory 17) Refer to Case 16.2. What will appear in the operating activities section related to accounts 17) receivable? A) The increase of $10,000 will be added to cash received from customers. B) The increase of $10,000 will be added to net income. C) The increase of $10,000 will be subtracted from net income D) The increase of $10,000 will be subtracted from cash received from customers

Step by Step Solution

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 Accounting Questions!

Which of the following is a characteristic of a corporation? a. A corporation has a limited life. b. The owners of a corporation have limited liability for the corporation's debts. c. The owners of a...

3 Calculate the missing amount from the Statement of Cash Flowsa Cash from Operating Activites Cash from Investing Activities Cash from Financing Activities Net Change in Cash $3,000 $-1,000 $6,000...

homework 2 During the year 202, Sea World Cruises, Inc., reported Service Revenues of $300,000. Its Deferred Revenue at year end 202 was $40,000 and and at year end 20X1 was $50,000. What is the Cash...

ABC Company uses the direct method to prepare its statement of cash flows. Presented below are selected items from its financial statements. 12/31/Yr 3 12/31/Yr 2 Accounts receivable $89,000 $56,000...

ABC Company uses the Direct method to prepare its statement of cash flows. Presented below are selected items from its financial statements. 12/31/Yr 3 12/31/Yr 2 Accounts receivable $89,000 $56,000...

Johnson Corporation Company uses the Direct method to prepare its statement of cash flows. Presented below are selected items from its financial statements. Which of the following would be shown in...

ABC Company uses the Direct method to prepare its statement of cash flows. Presented below are selected items from its financial statements. Which of the following would be shown in the Operating...

What values can a bool variable have? C++

Identify and briefly describe the assumptions of CVP.

| lil is the CEO of Notes Evc. a stationery manufachuer. She decades to open up a petal store to sel her products directly to forward vertical integration. backward vertical inetgrasion....

Assume you are graduated and you have two job offers to choose from. A) Describe the decision problem using 4 fundamental decision elements. B) Draw a fundamentals objectives hierarchy and a means...

A neglect of American-style managerialism. A lack of emphasis on those general aspects of management normally emphasized in Anglo-Saxon countries, although criticized by American commentators, does...

2 How should the Belgian management in the joint venture have handled the issue of recruitment?

Goal setting and appraisal. Several companies use goal setting extensively, and see it as useful. This involves the setting of individual targets, face-to-face performance discussions, and weekly to...