please answer the following 2 questions: 5. Any Decrease in Current Assets should be ... a) Added to Net Income b) None of the above. c) It depends on the circumstances d) Dedected from Net Income 6. Any increase in Liability should be: a) Added to Net Income b) It depends on the circumstances c) Dedected from Net Income d) None of the above.
please answer the following 2 questions: 5. Any Decrease in Current Assets should be ... a) Added to Net Income b) None of the above. c) It depends on the circumstances d) Dedected from Net Income 6. Any increase in Liability should be: a) Added to Net Income b) It depends on the circumstances c) Dedected from Net Income d) None of the above.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 14M
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please answer the following 2 questions:
5. Any Decrease in Current Assets should be ...
a) Added to Net Income
b) None of the above.
c) It depends on the circumstances
d) Dedected from Net Income
6. Any increase in Liability should be:
a) Added to Net Income
b) It depends on the circumstances
c) Dedected from Net Income
d) None of the above.
![ABC Inc. reports a net income of $165,000. Included in
net income is a gain on the sale of land of $20,000. A
comparison of this year's and last year's balance sheets
reveals an increase in accounts receivable of $35,000, an
increase in inventory of $20,000, and a decrease in
accounts payable of $55,000.
Required: Prepare the operating activities section of the
statement of cash flows using the indirect method. Then,
answer the following questions:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59aee2bb-f991-4260-9a22-993f209d765c%2F4c7dcddc-77d7-43fb-9235-7c5aa063437b%2Fif7oezb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC Inc. reports a net income of $165,000. Included in
net income is a gain on the sale of land of $20,000. A
comparison of this year's and last year's balance sheets
reveals an increase in accounts receivable of $35,000, an
increase in inventory of $20,000, and a decrease in
accounts payable of $55,000.
Required: Prepare the operating activities section of the
statement of cash flows using the indirect method. Then,
answer the following questions:
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