Question

Which one of the following might cause a company to have a large cash inflow from...

Which one of the following might cause a company to have a large cash inflow from operations but a smaller net operating income?

a.The company recorded a large amount of depreciation expense for the year.

b.The company sold equipment during the year.

c.The company issued new common stock for cash.

d.Inventory increased by a large amount during the year.

Homework Answers

Answer #1

Option A. Is correct

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
1. Hilton Company reported net income of $50,000 for the year. During the year, accounts receivable...
1. Hilton Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $15,000, accounts payable decreased by $2,000 and depreciation expense for the year of $9,000 was recorded. Net cash provided by operating activities for the year is: 2.  Land costing $75,000 was sold for $115,000 cash. The gain on the sale was reported on the income statement as other income. In addition, a building worth $400,000 was acquired by borrowing the money on a...
Tyson Company has a pre-tax net cash inflow of $1,200,000. The company can claim depreciation expense...
Tyson Company has a pre-tax net cash inflow of $1,200,000. The company can claim depreciation expense of $800,000 this year, and is subject to a combined income tax rate of 24%. What is the after-tax cash inflow for the year? $1,104,000. $456,000. $1,200,000. $400,000. $96,000.
Indicate whether each of the following events would cause an inflow or an outflow of cash...
Indicate whether each of the following events would cause an inflow or an outflow of cash and whether it would affect the investing (I) or financing (F) activities on the statement of cash flows. (a) Repayments of long-term debt (b) Sales of marketable securities (c) Repurchase of company’s common stock (d) Sales of common stock to investors (e) Purchase of equipment (f) Payment of dividends (g) Purchase of marketable securities (h) Borrowing from bank (i) Sale of building (j) Acquisition...
Which one of the following is a project cash inflow? Ignore any tax effects. Select one:...
Which one of the following is a project cash inflow? Ignore any tax effects. Select one: Decrease in accounts payable Increase in accounts receivable Decrease in inventory Depreciation expense Equipment acquisition
) Basha Company                                        &nbs
) Basha Company                                          Income Statement                          For the year ended December 31, 2019 Sales $70,000 Cost of goods sold 40,000 Gross margin 30,000 Depreciation expense 5,000 Other operating expenses 15,000 Operating income 10,000 Loss on sale of equipment    4,000 Income before taxes 6,000 Income tax expense    2,400 Net income $3,600 Additional data on activities during 2019 are as follows: •   During 2019, Basha Company sold used equipment for $3,000 that had cost $15,000 with accumulated depreciation of...
The following are the financial statements of Nosker Company. A.Prepare a statement of cash flows using...
The following are the financial statements of Nosker Company. A.Prepare a statement of cash flows using the indirect method. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $35,550 $20,750 Accounts receivable 32,300 19,250 Inventory 26,000 20,100 Equipment 59,500 77,200 Accumulated depreciation—equipment (29,250 ) (23,600 )    Total $124,100 $113,700 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,050 Income taxes payable 7,050 8,350 Bonds payable 27,700 32,300 Common stock 17,750 14,150 Retained earnings 42,900 42,850    Total $124,100 $113,700...
Tyson Company has a pre-tax net cash inflow of $1,100,000. The company can claim depreciation expense...
Tyson Company has a pre-tax net cash inflow of $1,100,000. The company can claim depreciation expense of $400,000 this year. The company is subject to a combined income tax rate of 21%. What is the after-tax cash flow for the year? $700,000. $869,000. $1,018,000. $953,000. $1,100,000.
1) Which of the following is a method for reporting cash flows from operating activities that...
1) Which of the following is a method for reporting cash flows from operating activities that begins with net income and reconciles to cash flows from operating​ activities? A.accrual method B.direct method C.indirect method D.cashminus−basis method 2) Under the indirect method of preparing a statement of cash​ flows, cash disbursed for the acquisition of a capital asset​ is: A.added in the financing activities section B.added in the investing activities section C.subtracted in the operating activities section D.subtracted in the investing...
Sheridan Company reported net income of $67000 for the year. During the year, accounts receivable decreased...
Sheridan Company reported net income of $67000 for the year. During the year, accounts receivable decreased by $7900, accounts payable increased by $4500 and depreciation expense of $5200 was recorded. Net cash provided by operating activities for the year is $84600. $54600. $65200. $61800.
During the period, Sanchez Company sold some excess equipment at a loss. The following information was...
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company’s accounting records From the Income Statement Depreciation expense $ 830 Loss on sale of equipment 3,500 From the Balance Sheet Beginning equipment 19,900 Ending equipment 11,400 Beginning accumulated depreciation 1,860 Ending accumulated depreciation 1,760 No new equipment was bought during the period. Required:   1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT