Ashley Co. uses the direct method in calculating its cash flow from operations. Which of the following items will not ha...
Ashley Co. uses the direct method in calculating its cash flow from operations. Which of the following items will not have an effect on cash flow from operating activities?
Multiple Choice
Increase in inventory.
Payment of dividends to stockholders.
Cash collections from customers.
Payment of interest to lenders.
Homework Answers
The answer is payment of dividend to stockholders
Payment of dividend is a financing activity and it does not affect cash flow from operating activities
Rest all are operating activities
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Ashley Co. uses the direct method in calculating its cash flow from operations. Which of the following items will not ha...
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33. Which of the following should be added to net income in calculating net cash flow...
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Required information Problem 12-14A The direct versus the indirect method of determining cash flow from operating...
Required information Problem 12-14A The direct versus the indirect method of determining cash flow from operating activities LO 12-1, 12-2 The following information applies to the questions displayed below] Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBl's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable 23.000 29,00e 49,400 Merchandise inventory Prepaid insurance 56, 200 17,60e 27,80e...
Saved The following summary transactions occurred during 2021 for Bluebonnet Bakers points Cash Received from: USES...
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Which of the following should be added to net income calculating net cash flow from operating...
Which of the following should be added to net income calculating net cash flow from operating activities using the indirect method a) an increase in inventory b) a decrease in account payable c) preferred dividens declared and paid d) a decrease in account receivable
Allison Co. uses the direct method to determine its cash flow from operations. During the year, it had sales revenue of $300,000. Its beginning Accounts Receivable balance was S30,000, and its ending Accounts Receivable balance was S40,000. Its cash collected from customers for the year was: S300,000 $290,000. $310,000. S370,000.
33. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a depreciation expense b. an increase in inventory c. again on the sale of equipment d. dividends declared and paid 34. A corporation uses the Indirect Statement of Cash Flows. A fixed asset has been sold for $25,000 representing a gain of $3,750. The value in the cocrating activities section regarding this event would be: a $25,000...
How do you calculate is the Net cash flow provided by operations? Avatar Company uses the indirect method to prepare the statement of cash flows. Please refer to the following income statement Sales revenue $240,000 Interest revenue 1,000 Gain on sale of plant assets 4,000 Total revenues and gains $245,000 Cout of goods sold 110,000 Salary expense 45,000 Depreciation expense 12,000 Other operating expenses 23,000 Interest expense 1,000 Income tax expense 5,000 Total expenses $196,000 Net income (loss) $49.000 Other...
4 Which is an example of a cash flow from an operating activity? (a) Payment of cash to lenders for interest. (b) Receipt of cash from the sale of capital stock. (c) Payment of cash dividends to the company's stockholders. (d) None of the above. Which is an example of a cash flow from an investing activity? (a) Receipt of cash from the issuance of bonds payable. (b) Payment of cash to repurchase outstanding capital stock. (c) Receipt of cash...
Required information Problem 12-14A The direct versus the indirect method of determining cash flow from operating activities LO 12-1, 12-2 The following information applies to the questions displayed below] Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBl's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable 23.000 29,00e 49,400 Merchandise inventory Prepaid insurance 56, 200 17,60e 27,80e...
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