On the statement of cash flows prepared using the indirect method, a $7,500 gain on the sale of fixed assets would be O a. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends O b. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities O C. added to net income in converting the net income reported on the income statement to cash flows from operating activities O d. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

On the statement of cash flows prepared using the indirect method, a $7,500 gain on the sale of fixed assets would be O a. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends O b. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities O C. added to net income in converting the net income reported on the income statement to cash flows from operating activities O d. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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While calculating operating profit which will be added to net profit a. Profit on Sale of Asset b. Increase in General Reserves c. Interest received d. Refund of Tax
Which of the following will be reflected in the "Cash flows from operating activities" of a Statement of Cash Flows? A) Adjustment for depreciation B) Purchase of equipment C) Increase or decrease in loans D) Purchase of inventory
For each of the following, identify whether it would be disclosed as an operating, financing, or investing activity on the statement of cash flows under the indirect method.
COTB MC Qu. 15-48 (Algo) Assume that a company provided... Assume that a company provided the following statement of cash flows (all sales are on account): Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts payable Net cash provided by (used in) operating activities Investing activities: Additions to property, plant, & equipment Net cash provided by (used in) investing activities Financing activities: Issuance of common stock Cash dividends paid Net cash provided by (used in) financing activities Net increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents How much is the company's free cash flow? $ 15 2 (10) 4 (40) 5 (16) $ 47 11 58 (40) (11) 7 6 $ 13
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Depreciation expenses are subtracted from net income using the indirect method to arrive at the cash flow supplied by operations.
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Which of the following will be reflected in the "Cash flows from operating activities" of a Statement of Cash Flows? O A. Adjustment for depreciation O B. Purchase of equipment O C. Increase or decrease in loans O D. Purchase of inventory Previous page nttps://mancosaconnectacza/mad/ouiz/attempt.php?attempt=446654&cmid=D181433&page=18%3D Tume bere to search II
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