Last year Ark charged $2,948,933 Depreciation on the Income Statement of Andrews. If early this year Ark purchased a new depreciable asset, the effect on Andrews's financial statements would be (all other items remaining equal):
Select: 1
A) Decrease Net Cash from operations on the Cash Flow Statement
B) No impact on Net Cash from operations
C) Just impact the Balance Sheet
D) Increase Net Cash from operations
Depreciation is a Non-Cash item. i.e. it does not involve any cash payment. If depreciation is an allowable expense then it reduce the tax burden of the company. In other words company will save the tax amount by charging depreciation as allowance expense. Hence the depreciation increase Net Cash From Operation.
Hence correct answer is Increase Net Cash From Operation.
choose D)
Last year Ark charged $2,948,933 Depreciation on the Income Statement of Andrews. If early this year...
Last year Attic charged $2,260,000 Depreciation on the Income Statement of Andrews. If early this year Attic sold all its depreicable assets for their book value, the effect on Andrews's financial statements would be (all other items remaining equal): a. Increase Net Cash from operations b. Decrease Net Cash from operations on the Cash Flow Statement c. No impact on Net Cash from operations d. Just impact the Balance Sheet
Currently Attic is charged $1,500,800 Depreciation on the Income Statement of Andrews. Andrews is planning for an crease in this depreciation. On the financial statements of Andrews will this? Select: 1 Save Answer Decrease Net Cash from Operations on the Cash Flow Statement. Have no impact on the Net Cash from Operations as depreciation appears in both Cash Flow and the Income Statement Increase Net Cash from Operations on the Cash Flow Statement Just impact the Balance Sheet. In the...
The Andrews Company has just issued $15,924,276 in dividends last year. The effect of this payment on the balance sheet is: Select: 1 Net Profit will decrease $15,924,276 Liabilities will increase $15,924,276 Expenses will increase $15,924,276 Equity will decrease $15,924,276
Points: 10©2006 Capsim Management Simulations, Inc.®
Currently Attic is charged $4,382,667 Depreciation on the
Income Statement of Andrews. Andrews is planning
for an increase in this depreciation. On the financial statements
of Andrews will this?
Select: 1
Decrease Net Cash from Operations on the Cash Flow
Statement.
Have no impact on the Net Cash from Operations as depreciation
appears in both Cash Flow and the Income Statement.
Just impact the Balance Sheet.
Increase Net Cash from Operations on the Cash...
The income statement disclosed the following items for the
year:
depreciation expense $55500
gain on disposal of equipment 32390
net income 423000
Ch. 16 Interactive HW+video eBook Show Me How Calculator Print Net Income 423,000 The changes in the current asset and ability accounts for the year are as follows: Increase (Decrease) Accounts receivable 58,650 Inventory (4,920) Prepaid insurance (1,850) Accounts payable (5.860) Income taxes payable 1.850 Dividends payable 1,300 a. Prepare the Cash Flows from Operating Activities section of...
1. Which of the following regarding financial statement analysis is false? a) According to the DuPont identity, Return on Equity is affected by operating efficiency (or profitability), asset use efficiency, and financial leverage. b) We can calculate the market value based measures of firm performance using only financial statements prepared according to GAAP. c) Asset management ratios measure the intensity and efficiency of asset use. d) For common size statements, we divide balance sheet items by total assets and income...
The net income reported on the income statement for the current year was $318,700. Depreciation recorded on equipment and a building amounted to $93,980 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $90,370 $95,280 Accounts receivable (net) 111,660 118,570 Inventories 232,780 203,250 Prepaid expenses 12,000 15,310 Accounts payable (merchandise creditors) 96,420 104,940 Salaries payable 15,310 13,420 Required: A....
The net income reported on the income statement for the current year was $334,100. Depreciation recorded on equipment and a building amounted to $101,710 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $90,280 $96,010 Accounts receivable (net) 111,780 118,690 Inventories 223,470 206,830 Prepaid expenses 12,870 14,850 Accounts payable (merchandise creditors) 96,330 103,900 Salaries payable 15,720 13,840 Required: A....
Which company has the least efficient SG&A/Sales
ratio?
Select: 1
Digby
Andrews
Chester
Baldwin
Round: 4 December 31, 2022 Financial Summary katharine maisak NOUTRER Cash Flow Statement Survey Cash flows from operating activities Andrews Adjustment for non-cash items: S15,487 Changes in current assets and liabilities: $109,608 Net cash from operations Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash...
Which company has the least efficient SG&A/Sales
ratio?
Select: 1
Digby
Andrews
Chester
Baldwin
Round: 4 December 31, 2022 Financial Summary katharine maisak NOUTRER Cash Flow Statement Survey Cash flows from operating activities Andrews Adjustment for non-cash items: S15,487 Changes in current assets and liabilities: $109,608 Net cash from operations Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash...