Homework Help is Here – Start Your Trial Now!
Business
Accounting
Cash flows from operating activities—indirect method  2Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: Decrease in inventory Increase in accounts receivable Increase in accounts payable Loss on retirement of long-term debt Depreciation of fixed assets Decrease in notes receivable due in 60 days from customers Increase in salaries payable Decrease in prepaid expenses Amortization of patent Increase in notes payable due in 120 days to vendors Gain on disposal of fixed assets

Cash flows from operating activities—indirect method  2Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: Decrease in inventory Increase in accounts receivable Increase in accounts payable Loss on retirement of long-term debt Depreciation of fixed assets Decrease in notes receivable due in 60 days from customers Increase in salaries payable Decrease in prepaid expenses Amortization of patent Increase in notes payable due in 120 days to vendors Gain on disposal of fixed assets

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Cash flows from operating activities—indirect method 

  1. 2Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:
    1. Decrease in inventory
    2. Increase in accounts receivable
    3. Increase in accounts payable
    4. Loss on retirement of long-term debt
    5. Depreciation of fixed assets
    6. Decrease in notes receivable due in 60 days from customers
    7. Increase in salaries payable
    8. Decrease in prepaid expenses
    9. Amortization of patent
    10. Increase in notes payable due in 120 days to vendors
    11. Gain on disposal of fixed assets
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS