Question

Explain how the amount of cash payments to suppliers is computed under the direct method.

Explain how the amount of cash payments to suppliers is computed under the direct method.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In a direct method cash flow statement, an increase in inventory would: A. decrease cash paid...
In a direct method cash flow statement, an increase in inventory would: A. decrease cash paid to suppliers. B. have no impact on cash paid to suppliers. C. increase cash paid to suppliers.
Direct or indirect? Most companies report operating cash flows using the ___________ method. Net income is...
Direct or indirect? Most companies report operating cash flows using the ___________ method. Net income is reconstructed on a cash basis when the ___________ method is used to report the net cash flows provided (used) by operating activities. The net cash amount provided by operating activities using the direct method is ____________ that computed using the indirect methods. The FASB recommends that the operating activities section of the statement of cash flows be reported using the ____________ method.
1/ Both the direct method and the indirect method of computing net cash flow from operating...
1/ Both the direct method and the indirect method of computing net cash flow from operating activities convert accrual-based income statement amounts into cash flows. TRUE/ FALSE 2/ Under the indirect method, when machinery is sold at a gain, the gain is added in the operating section of the statement of cash flows and the cost is added in the investing section. TRUE/FALSE 3/ All of the following are financing activities except: Multiple Choice * 

Selling capital stock.
 * 

Lending...
You wish to analyze your company’s cash payments to suppliers and its purchases discounts. Where do...
You wish to analyze your company’s cash payments to suppliers and its purchases discounts. Where do you find this information? Explain.                                      
Determining Selected Amounts for Cash Flows from Operating Activities—Direct Method Selected data taken from the accounting...
Determining Selected Amounts for Cash Flows from Operating Activities—Direct Method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $7,130 $7,790 Accounts payable (merchandise creditors) 38,180 42,140 Inventories 74,120 80,570 During the current year, the cost of merchandise sold was $414,900, and the operating expenses other than depreciation were $95,500. The direct method is used for presenting the...
How is the cash payment of interest computed in the cash flows statement?
How is the cash payment of interest computed in the cash flows statement?
how is the cash payment of interest computed in the cash flows statement?
how is the cash payment of interest computed in the cash flows statement?
Each of the following represents an effective cash management practice except: A. payments to suppliers should...
Each of the following represents an effective cash management practice except: A. payments to suppliers should be expedited in order to simplify record keeping B. payments to suppliers should be delayed as long as possible (without compromising the business relationship) in order to maximize the interest earning potential on those funds C. short term investments should be purchased with excess cash in order to maximize the interest earning potential D. receivable collections should be expedited in order to minimize the...
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Method Casebolt Company wrote off...
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Method Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount Shawn Brooke $11,700 Eve Denton 10,900 Art Malloy 15,100 Cassie Yost 2,800 Total 40,500 a. Journalize the write-offs for under the direct write-off method. If an amount box does not require an entry, leave it blank. b. Journalize the write-offs for under the allowance method. Also,...
Determining Selected Amounts for Cash Flows from Operating Activities—Direct Method Selected data taken from the accounting...
Determining Selected Amounts for Cash Flows from Operating Activities—Direct Method Selected data taken from the accounting records of Lachgar Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $5,530 $6,040 Accounts payable (merchandise creditors) 36,000 39,730 Inventories 67,070 72,900 Prepaid expenses 3,190 3,830 During the current year, the cost of merchandise sold was $377,600, and the operating expenses other than depreciation were $76,600. The direct method is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT