Question

In a statement of cash flows (using the indirect approach for operating activities), an increase in...

In a statement of cash flows (using the indirect approach for operating activities), an increase in inventories should be presented as a(n)

1) Outflow of cash.

2) Inflow and outflow of cash.

3) Addition to net income.

4) Deduction from net income.

Homework Answers

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
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2018 fiscal year was $659,000. Depreciation and amortization expense of $94,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $ 29,000 Increase in inventories 9,900 Increase prepaid expenses 9,200 Increase in salaries payable 10,700 Decrease in income taxes payable 18,000 Required:...
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 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...
Any one of the question need to be answer. i' ll be appriciate i yoou can...
Any one of the question need to be answer. i' ll be appriciate i yoou can help me find both. 34) How should a loss in from the sale of an investment in another company’s stock be reported in a statement of cash flows using the indirect method? A) In operating activities as a deduction from income B) In operating activities as an assiteion to income C) investment activities as a reduction of the cash inflow from the sale D)...
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 $128,200. Depreciation recorded on store equipment for the year amounted to $21,200. 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 $49,100 $45,170 Accounts receivable (net) 35,200 33,380 Inventories 48,070 50,820 Prepaid expenses 5,400 4,290 Accounts payable (merchandise creditors) 46,010 42,730 Wages payable...
On the statement of cash flows, a decrease in merchandise inventory is shown as: Group of...
On the statement of cash flows, a decrease in merchandise inventory is shown as: Group of answer choices A. a deduction from net income in the cash flows from operating activities section B. an addition to net income in the cash flows from operating activities section C. a cash inflow in the cash flows from financing activities section D. a cash outflow in the cash flows from financing activities section
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...
Chapter 14: Classifying items on the indirect statement of cash flows Learning Objective 1, 2 Destiny...
Chapter 14: Classifying items on the indirect statement of cash flows Learning Objective 1, 2 Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement: a.  Increase in accounts payable b. Payment of dividends c.  Decrease in accrued liabilities d. Issuance of common stock e.  Gain on sale of building f.  Loss on sale of land g.  Depreciation expense h. Increase in merchandise inventory i.   Decrease in accounts receivable j.  Purchase...
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year:...
Cash Flows from Operating Activities—Indirect Method The income statement disclosed the following items for the year: Depreciation expense $35,300 Gain on disposal of equipment 20,580 Net income 264,900 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $5,490 Inventory (3,130) Prepaid insurance (1,170) Accounts payable (3,720) Income taxes payable 1,170 Dividends payable 820 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the...
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...