Homework Answers
Answer
- Accelerated Depreciation means charging MORE or EXCESS depreciation to the Income Statement to write off the asset quickly.
- Accelerated Depreciation saves cash but shows lower net
income.
This is because:
>Depreciation expense is an ‘expense’ item.
>Charging too much depreciation expense (as done in accelerated depreciation) will lead to HIGHER depreciation expense on the Income Statement.
>This would lead to higher expenses and hence a LOWER Net Income before taxes.
>Lower net income before taxes = Lower income taxes to be paid. In this way, it saves CASH.
>On the other hand, higher depreciation will overstate the expense portion on the Income Statement.
>Higher expenses will lead to LOWER NET INCOME.
Add Answer to:
and unilely J U Drplalll. O "Accelerated depreciation saves cas vs lower net income.” Explain. in...
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If a company reports a large amount of net income on its income statement during a...
If a company reports a large amount of net income on its income statement during a year, the firm must have Select one: A. positive cash flow from orerating activities. B. positive free cash flow. C. Positive cash flow from financing activities. D. None of the above are correct. ing ic AOT a source of cash? Which of the following would be a result of changing from the straight-line to the accelerated (MACRS) method of depreciation? Select one: A. Iower...
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J. Tu U Ces pront-maximizing price and quantly, what is the cas pronus Q9 Consider a regional market for paper with a large number of consumers and producers. We assum producers act as price-takers and have a constant marginal cost MC = 2. The aggregate demand paper is defined by: Qp = 10 - P For each unit of paper supplied, the nearby river is affected as the plants reject chemicals products. I total erternal cost to society is non-linear...
In calculating the statement of cash flows, depreciation is added to net income because Group of...
In calculating the statement of cash flows, depreciation is added to net income because Group of answer choices it represents additional income for the firm. it is a non-cash expense that was subtracted to initially lower the taxable income. it is often a large number. depreciation represents a net inflow of cash.
v e, v, z)dzdydz where f(e.v.)3 Evaluate the triple integral D and Triple Integral Region R Remember that: H(u, t, u)|J(u, v, w)ldududu F(z, y, z)dV Preview t lower limit Preview น upper limit- U...
v e, v, z)dzdydz where f(e.v.)3 Evaluate the triple integral D and Triple Integral Region R Remember that: H(u, t, u)|J(u, v, w)ldududu F(z, y, z)dV Preview t lower limit Preview น upper limit- U lower limit Preview upper limit w lower limit upper limit H(u, o, w)- Preview Preview Ila Preview H(u, e, w)J(u,v, wdudedu Hint: The focus of this problem is on evaluating the integral and using the Jacobian.
v e, v, z)dzdydz where f(e.v.)3 Evaluate the triple...
A company's income statement showed the following: net income, $148,000 and depreciation expense, $37,200. An examination...
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Using the indirect method, which of the following would be added to net income? O depreciation...
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A company's income statement showed the following: net income, $118,000; depreciation expense. $32,000; and gain on...
A company's income statement showed the following: net income, $118,000; depreciation expense. $32,000; and gain on sale of plant assets. $6.000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $9,800; merchandise inventory increased $20,000; prepaid expenses increased $6,600; accounts payable increased $3.800. Calculate the net cash provided or used by operating activities. Multiple Choice $142,200. O $144,200. $149,000. O $170,200. O $131,000
Please help with finding Part J (highlighted) -Change vs 2015 represents the monetary amount vs. the...
Please help with finding Part J (highlighted)
-Change vs 2015 represents the monetary amount vs. the year
ago
All $000 % Sales Change vs 2015 % Ch. Fiscal Year2016 Year 3 17,690 Sales 100.0% $ 3,308 23.0% FY 2015 % Sales Change vs 2014 % Change FY 2014 % Sales Year 2 Year 1 $14,382 100.0% $ 2,688 23.0% $11,694 100.0% $ 7,806 181 2.4% C 65.2% Cost of Goods Sold 8,491 A $ 685 8.8% B Gross Profit $...
The net income reported on the income statement for the current year was $252,176. Depreciation recorded...
The net income reported on the income statement for the current year was $252,176. Depreciation recorded on fixed assets and amortization of patents for the year were $37,383, and $10,481, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $36,436 $56,297 Accounts receivable 106,564 129,589 Inventories 82,430 108,912 Prepaid expenses 6,857 2,458 Accounts payable (merchandise creditors) 69,041 45,467 What is the amount of cash...
If the adjustment for depreciation is not recorded a. assets are understated. O b. net income is overstated. c. net income is correctly stated. O d. revenues are overstated.
If a company reports a large amount of net income on its income statement during a year, the firm must have Select one: A. positive cash flow from orerating activities. B. positive free cash flow. C. Positive cash flow from financing activities. D. None of the above are correct. ing ic AOT a source of cash? Which of the following would be a result of changing from the straight-line to the accelerated (MACRS) method of depreciation? Select one: A. Iower...
J. Tu U Ces pront-maximizing price and quantly, what is the cas pronus Q9 Consider a regional market for paper with a large number of consumers and producers. We assum producers act as price-takers and have a constant marginal cost MC = 2. The aggregate demand paper is defined by: Qp = 10 - P For each unit of paper supplied, the nearby river is affected as the plants reject chemicals products. I total erternal cost to society is non-linear...
v e, v, z)dzdydz where f(e.v.)3 Evaluate the triple integral D and Triple Integral Region R Remember that: H(u, t, u)|J(u, v, w)ldududu F(z, y, z)dV Preview t lower limit Preview น upper limit- U lower limit Preview upper limit w lower limit upper limit H(u, o, w)- Preview Preview Ila Preview H(u, e, w)J(u,v, wdudedu Hint: The focus of this problem is on evaluating the integral and using the Jacobian.
v e, v, z)dzdydz where f(e.v.)3 Evaluate the triple...
A company's income statement showed the following: net income, $148,000 and depreciation expense, $37,200. An examination of the company's current assets and current liabilities showed the following changes: accounts receivable decreased $11,800; merchandise inventory increased $22,800; and accounts payable increased $5,800. Calculate the net cash provided or used by operating activities. Multiple Choice O $142,000 O $190,400 O $144.800 O $180,000 O $214,000
Using the indirect method, which of the following would be added to net income? O depreciation expense O increase in prepaid expenses decrease in accounts payable O increase in accounts receivable A company just starting its business made the following four inventory purchases in June Date Jun 1 Jun 10 Jun 15 Jun 28 Number of Units 150 200 200 150 Total Cost $480 660 680 525 On June 25, the company made its first sale when a local customer...
A company's income statement showed the following: net income, $118,000; depreciation expense. $32,000; and gain on sale of plant assets. $6.000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $9,800; merchandise inventory increased $20,000; prepaid expenses increased $6,600; accounts payable increased $3.800. Calculate the net cash provided or used by operating activities. Multiple Choice $142,200. O $144,200. $149,000. O $170,200. O $131,000
Please help with finding Part J (highlighted)
-Change vs 2015 represents the monetary amount vs. the year
ago
All $000 % Sales Change vs 2015 % Ch. Fiscal Year2016 Year 3 17,690 Sales 100.0% $ 3,308 23.0% FY 2015 % Sales Change vs 2014 % Change FY 2014 % Sales Year 2 Year 1 $14,382 100.0% $ 2,688 23.0% $11,694 100.0% $ 7,806 181 2.4% C 65.2% Cost of Goods Sold 8,491 A $ 685 8.8% B Gross Profit $...
The net income reported on the income statement for the current year was $252,176. Depreciation recorded on fixed assets and amortization of patents for the year were $37,383, and $10,481, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $36,436 $56,297 Accounts receivable 106,564 129,589 Inventories 82,430 108,912 Prepaid expenses 6,857 2,458 Accounts payable (merchandise creditors) 69,041 45,467 What is the amount of cash...
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