JHC, Inc. contributed $12,000 to its pension during the past year. Pension expense for the year...
JHC, Inc. contributed $12,000 to its pension during the past year. Pension expense for the year was $35,000. What will be the adjustment line item for pensions in JHC's indirect style statement of cash flows?
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$23,000 in CFO |
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$23,000 in CFI |
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($23,000) in CFI |
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($23,000) in CFO |
Homework Answers
Solution:
adjustment line item for pensions in JHC's indirect style statement of cash flows is "$23,000 in CFO"
As $23,000 is non cash expenses, same should be added to net income under cash flow from operating activities.
Hence first option is correct.
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