Question

One reason that Net Income is not the same as Operating Cash Flows is that some...

One reason that Net Income is not the same as Operating Cash Flows is that some expenses are _______ deductions
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution :-

Net income is the profit of a company that earned by company for the specified time period.

Cash flow from operating activity includes day to day business traction that generate cash inflow and outflow only.

Cash Flow from Operating Activity is calculated as the sum of net income with adjusting of non-cash expenses and change in working capital.

Following items treated differently on the cash flow statement and income statement.

a. Depreciation

b. Amortization

c. Profit /Loss on sale of fixed assets

d. Gain/Loss on issue of Equity.

etc.

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
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $202,100. Depreciation recorded on equipment and a building amounted to $60,400 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $51,330 $54,410 Accounts receivable (net) 65,090 67,140 Inventories 128,330 115,680 Prepaid expenses 7,130 7,670 Accounts payable (merchandise creditors) 57,340 60,720...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $120,600. Depreciation recorded on store equipment for the year amounted to $19,900. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $49,330 $44,890 Accounts receivable (net) 35,370 33,170 Inventories 48,290 50,500 Prepaid expenses 5,430 4,260 Accounts payable (merchandise creditors) 46,220 42,470 Wages payable...
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for...
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $23,500 $18,700 Accounts receivable (net) 56,000 48,000 Merchandise inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $244,900. Depreciation recorded on equipment and a building amounted to $73,200 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $64,900 $68,790 Accounts receivable (net) 82,290 84,890 Inventories 162,250 146,250 Prepaid expenses 9,020 9,700 Accounts payable (merchandise creditors) 72,490 76,770...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $116,500. Depreciation recorded on store equipment for the year amounted to $19,200. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $47,530 $43,730 Accounts receivable (net) 34,080 32,320 Merchandise inventory 46,530 49,200 Prepaid expenses 5,230 4,150 Accounts payable (merchandise creditors) 44,540 41,370 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $135,500. Depreciation recorded on store equipment for the year amounted to $22,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $54,060 $49,190 Accounts receivable (net) 38,760 36,350 Merchandise inventory 52,920 55,340 Prepaid expenses 5,950 4,670 Accounts payable (merchandise creditors) 50,650 46,530 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $137,900. Depreciation recorded on store equipment for the year amounted to $22,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $53,640 $48,810 Accounts receivable (net) 38,460 36,070 Merchandise inventory 52,510 54,910 Prepaid expenses 5,900 4,640 Accounts payable (merchandise creditors) 50,260 46,170 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $146,100. Depreciation recorded on store equipment for the year amounted to $24,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $58,590 $53,320 Accounts receivable (net) 42,010 39,400 Merchandise inventory 57,360 59,990 Prepaid expenses 6,440 5,070 Accounts payable (merchandise creditors) 54,900 50,440 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $135,100. Depreciation recorded on store equipment for the year amounted to $22,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $53,630 $49,340 Accounts receivable (net) 38,450 36,460 Merchandise inventory 52,500 55,510 Prepaid expenses 5,900 4,690 Accounts payable (merchandise creditors) 50,250 46,680 Wages...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the...
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $117,600. Depreciation recorded on store equipment for the year amounted to $19,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $45,630 $41,520 Accounts receivable (net) 32,720 30,680 Merchandise inventory 44,670 46,710 Prepaid expenses 5,020 3,940 Accounts payable (merchandise creditors) 42,760 39,280 Wages...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT