The indirect method is the reverse method which starts from the net income as per the income statement and added back all those types of expense which non-cash and non-operating expense. These types of expense which are not affected the cash inflow or outflow. To discuss: The method followed by the Company-A and Company-B for computing operating cash and if they have the same.

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Answer 1

Question

Chapter 11, Problem 66.1C

To determine

The indirect method is the reverse method which starts from the net income as per the income statement and added back all those types of expense which non-cash and non-operating expense. These types of expense which are not affected the cash inflow or outflow.

To discuss:

The method followed by the Company-A and Company-B for computing operating cash and if they have the same.

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Answer 2

Question

Chapter 11, Problem 66.1C

To determine

The indirect method is the reverse method which starts from the net income as per the income statement and added back all those types of expense which non-cash and non-operating expense. These types of expense which are not affected the cash inflow or outflow.

To discuss:

The method followed by the Company-A and Company-B for computing operating cash and if they have the same.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 66.1C

To determine

The indirect method is the reverse method which starts from the net income as per the income statement and added back all those types of expense which non-cash and non-operating expense. These types of expense which are not affected the cash inflow or outflow.

To discuss:

The method followed by the Company-A and Company-B for computing operating cash and if they have the same.

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Answer 4

Question

Chapter 11, Problem 66.1C

To determine

The indirect method is the reverse method which starts from the net income as per the income statement and added back all those types of expense which non-cash and non-operating expense. These types of expense which are not affected the cash inflow or outflow.

To discuss:

The method followed by the Company-A and Company-B for computing operating cash and if they have the same.

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Answer 5

Chapter 11, Problem 66.1C

To determine

The indirect method is the reverse method which starts from the net income as per the income statement and added back all those types of expense which non-cash and non-operating expense. These types of expense which are not affected the cash inflow or outflow.

To discuss:

The method followed by the Company-A and Company-B for computing operating cash and if they have the same.

Answer 6

Chapter 11, Problem 66.1C

To determine

The indirect method is the reverse method which starts from the net income as per the income statement and added back all those types of expense which non-cash and non-operating expense. These types of expense which are not affected the cash inflow or outflow.

To discuss:

The method followed by the Company-A and Company-B for computing operating cash and if they have the same.

Answer 7

Chapter 11, Problem 66.1C

To determine

The indirect method is the reverse method which starts from the net income as per the income statement and added back all those types of expense which non-cash and non-operating expense. These types of expense which are not affected the cash inflow or outflow.

To discuss:

The method followed by the Company-A and Company-B for computing operating cash and if they have the same.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - How is a statement of cash flows different from an...Ch. 11 - Prob. 4DQ Ch. 11 - What are the three categories into which inflows...Ch. 11 - Prob. 6DQ Ch. 11 - Why are direct exchanges of long-term debt for...Ch. 11 - Describe the relationship between changes in cash...Ch. 11 - What are two ways to report a companys net cash...Ch. 11 - Why are depreciation, depletion, and amortization...

Solution Summary: The author explains that the indirect method is the reverse method of direct method which starts from net income as per the income statement and adds back all expenses which are non-cash.

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Chapter 11 Solutions