Question

Amounts that would be classified as a current liability are Stock Options with exercise date of...

Amounts that would be classified as a current liability are

Stock Options with exercise date of six months

Dividends declared payable in stock during next month

Debt due in nine months with long-term refinancing approved at due date

Principal payments due over the next year on a 30-year mortgage

An increase in inventory is included within a statement of cash flows computed on the indirect method by:

Adding the increase to net income

Subtracting the increase from net income

Adding the increase to cost of goods sold in determining cash to vendors

Subtracting the increase from cost of goods sold in determining cash to vendors

Homework Answers

Answer #1

Requirement 1:

Answer: Dividends declared payable in stock during next month

Explanation:

1. Dividend is payable next month so it is considered as current liabilities

2. Stock options is an expense so it is not a current liability

3. Debt is refinanced on its due date so it is considered under non-current liability

4. principal payments due is over next year is on a 30 year mortgage so it is considered as non current liabilities

Requirement 2:

Answer: Subtracting the increase from net income

Explanation:

1. Increase in inventory is due purchases which results in cash outflow

2. Hence it is substracted from net income under changes in operating assets and liabilities computed under indirect method of cash flow

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Identify which of the following items would be classified as a current liability and which would...
Identify which of the following items would be classified as a current liability and which would be classified as a non-current liability. (a) A bank loan payable due in two years, with principal due at maturity and interest due the first of each month select a type of liability (b) Cash received in advance by Air Canada for airline tickets on flights leaving next month select a type of liability (c) HST collected on sales select a type of liability...
Inventory is classified on the balance sheet as a a.current liability b.long-term asset c.current asset d.long-term...
Inventory is classified on the balance sheet as a a.current liability b.long-term asset c.current asset d.long-term liability What is the term applied to the excess of sales over the cost of goods sold? a.net income b.gross profit c.operations d.gross sales The inventory system employing accounting records that continuously disclose the amount of inventory is called a.periodic b.retail c.perpetual d.physical Calculate the gross profit for Jefferson Company based on the following: Sales $764,000 Selling expenses 42,500 Cost of goods sold 538,000...
QUESTION 1 Select the Sources of Funds that would be included on the Statement of Cash...
QUESTION 1 Select the Sources of Funds that would be included on the Statement of Cash Flows. Increase in Bank Notes Decrease in Bank Notes Net Income Increase in Accounts Payable Increase in Investments Depreciation Decrease in Investments Capital Expenditures Calculate the Ending Cash Balance given the following information: Beginning Cash Balance (1/1/XX): $20,000 Sources of Funds: $15,000 Uses of Funds: $25,000 Ending Cash Balance: ? QUESTION 3 Dallas Company had NET sales of $1,000,000 for the year, cost of...
Giant acquired all of Small’s common stock on January 1, 2014, in exchange for cash of...
Giant acquired all of Small’s common stock on January 1, 2014, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $64,500 of the fair-value price was attributed to undervalued land while $72,000 was assigned to undervalued equipment having a 10-year remaining life. The $63,500 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant...
*1. Which of the following items would be an example of liability? A. cash investments made...
*1. Which of the following items would be an example of liability? A. cash investments made by owners B. cash received from a bank loan C. cash received from customers for services provided D. all of these ___________________________________________________________ 2. Which of the following items appears in the operating activities section of the statement     of cash flows? A. Cash inflow from interest revenue. B. Cash outflow for the purchase of a computer. C. Cash inflow from the issuance of common...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed,...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $972,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,020,000 and Retained Earnings of $51,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $108,000. QuickPort attributed the $9,000 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following:...
Giant acquired all of Small’s common stock on January 1, 2014, in exchange for cash of...
Giant acquired all of Small’s common stock on January 1, 2014, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $75,500 of the fair-value price was attributed to undervalued land while $52,000 was assigned to undervalued equipment having a 10-year remaining life. The $72,500 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant...
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 30 percent of...
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary’s convertible bonds. The following consolidated financial statements are for 2017 and 2018: 2017 2018 Revenues $ (915,000 ) $ (1,045,000 ) Cost of goods sold 613,000 653,000 Depreciation and amortization 103,000 126,000 Gain on sale of building 0 (33,000 ) Interest expense 43,000 43,000 Consolidated net income (156,000 ) (256,000 ) to noncontrolling interest 22,000 24,000 to parent company $ (134,000 )...
Exercise 14-6 Prepare a Statement of Cash Flows; Free Cash Flow [LO14-1, LO14-2, LO14-3] Comparative financial...
Exercise 14-6 Prepare a Statement of Cash Flows; Free Cash Flow [LO14-1, LO14-2, LO14-3] Comparative financial statement data for Carmono Company follow: This Year Last Year   Assets   Cash $ 3      $ 6        Accounts receivable 22      24        Inventory 50      40        Total current assets 75      70        Property, plant, and equipment 240      200           Less accumulated depreciation 65      50        Net property, plant, and equipment 175      150        Total assets $ 250...
At December 31, 2017 an analysis of the accounts and discussions with Porter Corporation's executives revealed...
At December 31, 2017 an analysis of the accounts and discussions with Porter Corporation's executives revealed the following information: The amount of income taxes applicable to ordinary income was $60,372. This tax amount does not include the tax effect of the discontinued operations loss which amounted to $24,540. Inventory is stated at the lower-of-FIFO-cost-or-market    Investments include common stock of a company that is classified as short-term and totals $81,360 and common stock of a different company that is classified...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT