Answered: asap Explain the below elements of…

asap Explain the below elements of cash outflows: a- Purchase of New Equipment. b- Investment in Working Capital. c- Manufacturing, Operating, and Maintenance Costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cash decreases due to the purchase of equipment would be found in which section of the statement of…

A: Equipment is a fixed asset, which helps in the regular working of the business. it a long term…

Q: Which of the following is an appropriate method of computing free cash fl ow to the fi rm? C .…

A: Free Cash Flow is the money generated by a firm to finance operations and sustain its capital assets…

Q: Cash paid to purchase long-term investments would be reported in a. a separate schedule of…

A: The objective of the question is to identify where the cash paid to purchase long-term investments…

Q: The cash flows from investment activities portion of the statement of cash flows would comprise the…

A: The Answer :

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Salvage value of a piece of equipment would show on the cash flow diagram as wha Select one: a.…

A: Salvage value is the disposal value of equipment at the end of life of project.

Q: Finding the present value of future cash flows is called O A. analytics, tracking and finding the…

A: Capital Budgeting: It is a process a company undertakes for the evaluation of potential investments…

Q: section on the Cash inflows from sales of investments will appear in the Statement of Cash Flows.…

A: Cash inflow indicates the receipt of cash by an entity.

Q: Which of the following are Cash Outflows from Operating Activities? Check All That Apply Purchase a…

A: The statement of cash flows records all the sources and uses of cash in the business during a…

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows:

Q: capital investment:

A: Capital investment refers to acquiring physical assets for the further use of achieving long-term…

Q: In a statement of cash flows prepared under IFRS, interest paid a. Must be classified as an…

Q: We can separate cash return on assets into: a. Cash flow to sales and return on assets. b. Profit…

A: Cash return on assets is: = Cash flows / Average Assets

Q: Which of the following should NOT be taken into account in calculating free cash flow? Select one:…

A: Free Cash Flow = Net income + Depreciation – Change in Working Capital – Capital Expenditure

Q: When constructing a Statement of Cash Flows, which of the following actions would be considered a…

A: Use of funds means use of cash for meeting working capital requirements or long term expenditure. We…

Q: Classify following cash flows as operating, investing, or financing activities. Cash paid for…

A: Statement of cash flows Statement of cash flow is a financial statement that shows the cash and cash…

Q: The cash flow statement is divided into three sections: operating, investing, and financing. Know…

A: Since it illustrates how much money is earned and spent over time, the Statement of cash flow is…

Q: Determining the future value of one or more present day cash flows is known as ________. A.…

A: Future value is known as value in the future of present cash flows

Q: Which of the following are examples of investing cash flows?

A: Cash flow statement shows the cash inflow and cash inflow of the company. It involves the cash…

Q: In the discounted cash flow (DCF) method, which of the following is the correct formula for…

A: EBIT represents the operating profit of a company before deducting interest and taxes.It's the…

Q: Cash paid to purchase long-term investments would be reported in the Statement of Cash Flows as:…

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: T/F: The statement of cash flows reports the cash inflows and outflows from operating, investing,…

A: Cash inflow means the amount of cash received by an entity during a period and cash outflow means…

Q: The following information was obtained from Galena Company's comparative balance sheets. As- sume…

A: Cash flow from operating activities is the net amount of inflows and outflows from the daily…

Q: Which of the following formulas will correctly calculate Net Working Capital? A. Current…

A: The objective of the question is to identify the correct formula for calculating Net Working Capital…

Q: using the indirect method, prepare a statement of cash flows. Can you spell out the calculation…

A: Cash Flow Statement is a statement which shows the actual inflow and outflow of cash and cash…

Q: Using the direct method of preparing the statement of cash flows, to determine the cash effects of…

A: Statement of cash flows: Statement of cash flows is one among the financial statement of a Company…

Q: Which of the following is an advantage of the cash payback method? a. takes into consideration…

A: The objective of the question is to identify the advantage of the cash payback method among the…

Q: Changes to net working capital are categorized as: a. cash flow from operating activities.…

A: Cash flows of company are categorized into 3 parts : Operating, Investing and financing activity

Q: An investment is the use of money or capital for income or _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: The total cash count minus the amount of the Change Fund should be equal to: a.the total current…

A: Cash Count represents the total cash at the counter at the end of the day and the change fund is…

Q: One of the basic techniques used in evaluating after-tax operating cash flows is to Select one: a.…

A: The Net Income is calculated as the difference of the Revenues and Expenses , while calculating the…

Q: The purchase of a long-term asset is classified in the statement of cash flows as a(n) a. Operating…

Q: The purchase of equipment financed by a long-term notes payable is an example of ________. A…

A: Solution- Non-cash investing and financing activity= Its means some investing and financial…

Q: The cash flow cycle also is known as the: Select one: a. cash conversion cycle. b. cash-to-cash…

A: The correct answer is: c. working capital cycle. Explanation:The correct answer is: c. working…

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Cash Flow Statement: It is a financial statement prepared by a company to report their cash…

Question

100%

asap

Explain the below elements of cash outflows:
a- Purchase of New Equipment.
b- Investment in Working Capital.
c- Manufacturing, Operating, and Maintenance Costs.
d- Leasing Expenses.
e- Interest and Repayment of Borrowed Funds.
f- Income Taxes.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Net working capital increases when: A. a credit customer pays for his or her purchase B. inventory is sold at cost. C. fixed assets are purchased for cash D. inventory is purchased on credit
Please answer c. “What amount of net cash flow from operating activities would be reported”
What is the operating cash flow? The capital spending? The change is net working capital? The cash flow from asset?
Prepare a cash flow statement (indirect method) from the given information. Show your solutions
Classify each of the following cash flows as operating, investing, or financing activities:
Select the item that matches with the description. Descriptions a. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows. b. Item included in net income, but excluded from net operating cash flows. c. Net cash flows from operating activities divided by average total assets. d. Cash transactions involving lenders and investors. e. Cash transactions involving net income. f. Cash transactions for the purchase and sale of long-term assets. g. Purchase of long-term assets by issuing stock to seller. h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes. Terms
If all values carry a + sign, cash flow before taxes is represented by the following equation:a. gross income - expenses - depreciation - initial investment + salvage valueb. gross income - expenses - depreciation + salvage valuec. gross income - expenses - initial investment + salvage valued. gross income - expenses + initial investment + salvage value
Find all of these from photo: A) operating cash flow B) net capital spending C) net change in working capital D) net cash flow from asset E) cash flow from creditors
Match each of the following term with the corresponding description. Not all descriptions will be used._____ Operating activities_____ Indirect method_____ Cash equivalent_____ Investing activities_____ Direct method_____ Financing activitiesA. Measures the percent of net income that comes from high-margin products.B. Includes such events as the receipt of dividends and interest on investment assets.C. Includes assets that are very liquid and have original maturities of three months or less.D. The percent of total debt represented by a company's cash account.E. These activities include only purchases made with borrowed funds.F. Where cash flows from operating activities are calculated by converting each revenue and expense item from an accrual to a cash basis.G. This ratio multiplies net income by the average rate of interest the company receives on its investments.H. This ratio uses net income instead of operating cash flow to Analysis a company's ability to finance the cost of its…
What section of the cash flow statement would you find a purchase of manufacturing equipment? a. Profit Before Interest and Tax b. Operating c. Financing d. Investing
Which of the following is included in the cash flows from financing activities section of the statement of cash flows? Multiple Choice Purchase of investments. Interest expense. Purchase of treasury stock. Sale of equipment. Interest revenue.
Classify following cash flows as operating, investing, or financing activities. Cash received as interest on investments