Question: Drexon Corp., which follows U.S. GAAP, uses the direct method to report its cash flows. The CFO is assessing the impact on cash flows of

Drexon Corp., which follows U.S. GAAP, uses the direct method to report its cash flows. The CFO is assessing the impact on cash flows of 4 events during the fiscal year. Specify which category each event falls under (under the direct method) and note whether it increases cash, decreases cash, or has no impact on cash.

1. A gain of $8,200 is booked on the sale of an asset.

2. Depreciation and amortization expense totaling $50,000 is booked.

3. Drexon purchases a trading security which it classifies as noncurrent.

4. Accrued liabilities increase from $245,000 to $250,000.

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!

The bill of materials (BOM) of product Z and relevant lead times (LT) in days are given below. Ten units of product Z are needed on day 6. According to Material Requirements Planning (MRP)...

Drexon Corp., which follows U.S. GAAP, uses the direct method to report its cash flows. The CFO is assessing the impact on cash flows of 12 events during the fiscal year. Specify which category each...

TCO F) Drexon Corp., which follows U.S. GAAP, uses the direct method to report its cash flows. The CFO is assessing the impact on cash flows of 12 events during the fiscal year. Specify which...

. (TCO F) Drexon Corp., which follows U.S. GAAP, uses the direct method to report its cash flows. The CFO is assessing the impact on cash flows of 12 events during the fiscal year. Specify which...

Neuralstem, Inc. (NYSE: CUR; Germantown, MD; hereafter, Neuralstem or the Company) is a biopharmaceutical company that is utilizing its proprietary human neural stem cell technology to create a...

Neuralstem, Inc. (NYSE: CUR; Germantown, MD; hereafter, "Neuralstem" or "the Company") is a biopharmaceutical company that is utilizing its proprietary human neural stem cell technology to create a...

Required: a) Calculate the current ratio, quick ratio, gross profit margin, profit margin, and debt to total assets for both years. Explain whether the ratios are improving or declining. b) Review...

Profitability ratios: o Gross profit margin o Net profit margin o Return on stockholders' equity Liquidity ratios: o Current ratio o Quick ratio o Inventory turnover Leverage ratios: o Debt-to-assets...

In Problem 13.6 on page 470, you used the total worldwide revenue ($ millions) and full time voluntary turnover (%) data stored in Best Companies to predict the number of full time jobs added. Using...

(a) If market price is above equilibrium price, explain what happens and why? (b) If market price is below equilibrium price, explain what happens and why?

Problem 8 - 9 Dividend Growth ( LG 8 - 5 ) Annual dividends of ATTA Corporate grew from $ 0 . 8 6 in 2 0 0 5 to $ 1 . 3 2 in 2 0 1 7 . What was the annual growth rate? Note: Round your answer to 2...

The unauthorized account openings at Wells Fargo, which involved deceptive practices and the manipulation of customer accounts, constituting what type of ethical dilemmas?

=+5. Have a look at this short video on e-waste processing in India: http://video.google.com/videoplay?docid= 5944615355863607664 or this 60 Minutes report on e-waste in China:...

=+4. What is your image of the NGO Greenpeace? Do you trust the organization to provide accurate and objective assessments of the environmental impact of business? Visit the organizations Web site

=+just a public relations effort by the company, or is this really a new approach to sustainable business? Why isnt Dell focused on minimizing the carbon footprint created in the production process,...