Business, 05.05.2020 17:36 toxsicity

A company had net income of $245,130. Depreciation expense was $20,107. During the year, accounts receivable and inventory increased by $14,733 and $29,685, respectively. Prepaid expenses and accounts payable decreased by $3,608 and $5,431, respectively. There was also a loss on the sale of equipment of $3,668. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method? a.$215,328

Answers: 3

Show answers

Answers

Answer from: microwave13016

$222,664

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.

The net cash flow from operating activities

= $245,130 + $20,107 - $14,733 - $29,685 + $3,608 - $5,431 + $3,668

= $222,664

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

i would prefer to go with the news article for nate, its recent and updated and stores a lot of information

Another question on Business

Business, 22.06.2019 09:30

Which of these is not a result of regular exercise

Answers: 1

Answer

Business, 22.06.2019 16:00

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.

Answers: 1

Answer

Business, 22.06.2019 19:50

Ichelle is attending college and has a part-time job. once she finishes college, michelle would like to relocate to a metropolitan area. she wants to build her savings so that she will have a "nest egg" to start her off. michelle works out her budget and decides she can afford to set aside $9090 per month for savings. her bank will pay her 4 %4% per year, compounded monthly, on her savings account. what will be michelle's balance in five years?

Answers: 3

Answer

Business, 22.06.2019 23:30

Shelby bought her dream car, a 1966 red convertible mustang, with a loan from her credit union. if shelby paid 5.1% and the bank earned a real rate of return of 3.5%, what was the inflation rate over the life of the loan?

Answers: 2

Answer

You know the right answer?

A company had net income of $245,130. Depreciation expense was $20,107. During the year, accounts re...

Questions