Question
In: Accounting
How is “Depreciation Expense” separately listed in the Operations Section of the Statement of Cash Flows...
How is “Depreciation Expense” separately listed in the Operations Section of the Statement of Cash Flows using the Direct and Indirect methods?
Select one:
a.
| Direct | Indirect |
|---|---|
| Added | Added |
b.
| Direct | Indirect |
|---|---|
| Subtracted | Subtracted |
c.
| Direct | Indirect |
|---|---|
| Not Listed | Added |
d.
| Direct | Indirect |
|---|---|
| Added | Not Listed |
e.
| Direct | Indirect |
|---|---|
| Subtracted | Added |
Solutions
Expert Solution
Answer:
a. Direct Indirect
Added Added
The use of depreciation can reduce taxes that can ultimately help to increase net income. Net income is then used as a starting point in calculating a company's operating cash flow. The result is a higher amount of cash on the cash flow statement because depreciation is added back into the operating cash flow
ekkarill92 answered 3 years agoRelated Solutions
How is “Depreciation Expense” separately listed in the Operations Section of the Statement of Cash Flows...
How is “Depreciation Expense” separately listed in the
Operations Section of the Statement of Cash Flows using the Direct
and Indirect methods?
Select one:
a.
Direct
Indirect
Added
Added
b.
Direct
Indirect
Subtracted
Subtracted
c.
Direct
Indirect
Not Listed
Added
d.
Direct
Indirect
Added
Not Listed
e.
Direct
Indirect
Subtracted
Added
On the statement of cash flows, we have discussed that we add back depreciation expense, we...
On the statement of cash flows, we have discussed that we add
back depreciation expense, we add back losses, and we subtract
gains. Why does the statement of cash flows require these actions
and where does the impact of gains and losses get reported?
The income statement and the cash flows from the operatingactivities section of the statement of...
The income statement and the cash flows from the operating
activities section of the statement of cash flows are provided
below for Syntric Company. The merchandise inventory account
balance neither increased nor decreased during the reporting
period. Syntric had no liability for insurance, deferred income
taxes, or interest at any time during the period.SYNTRIC COMPANYIncome StatementFor the Year Ended December 31, 2018($ in 000s)Sales$276.7Cost of goods sold(171.0)Gross margin105.7Salaries expense$36.2Insurance expense17.1Depreciation expense10.0Depletion expense3.6Bond interest expense10.7(77.6)Gains and losses:Gain on sale of equipment20.0Loss...
The income statement and the cash flows from the operating activities section of the statement of...
The income statement and the cash flows from the operating
activities section of the statement of cash flows are provided
below for Syntric Company. The merchandise inventory account
balance neither increased nor decreased during the reporting
period. Syntric had no liability for insurance, deferred income
taxes, or interest at any time during the period.
SYNTRIC COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Sales
$
283.4
Cost of goods sold
(161.4
)
Gross margin
122.0...
The income statement and the cash flows from the operating activities section of the statement of...
The income statement and the cash flows from the operating
activities section of the statement of cash flows are provided
below for Syntric Company. The merchandise inventory account
balance neither increased nor decreased during the reporting
period. Syntric had no liability for insurance, deferred income
taxes, or interest at any time during the period.
SYNTRIC COMPANY
Income Statement
For the Year Ended December 31, 2018
($ in 000s)
Sales
$
280.2
Cost of goods sold
(175.4
)
Gross margin
104.8...
The income statement and the cash flows from the operating activities section of the statement of...
The income statement and the cash flows from the operating
activities section of the statement of cash flows are provided
below for Syntric Company. The merchandise inventory account
balance neither increased nor decreased during the reporting
period. Syntric had no liability for insurance, deferred income
taxes, or interest at any time during the period.
SYNTRIC COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Sales
$
276.8
Cost of goods sold
(182.0
)
Gross margin
94.8...
The income statement and the cash flows from the operating activities section of the statement of...
The income statement and the cash flows from the operating
activities section of the statement of cash flows are provided
below for Syntric Company. The merchandise inventory account
balance neither increased nor decreased during the reporting
period. Syntric had no liability for insurance, deferred income
taxes, or interest at any time during the period.
SYNTRIC COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Sales
$
283.1
Cost of goods sold
(175.6
)
Gross margin
107.5...
In the statement of cash flows, in which section is the cash payment of salaries reported?...
In the statement of cash flows, in which section is the
cash payment of salaries reported?
A. Operating Activities
B. Investing Activities
C. Financing Activities
D. Schedule of Noncash Transactions
E. None of the above
Using the direct method, if the cash receipts from
customers are 5,000,000 and the cash paid for merchandise is
3,000,000 and the net cash flow from operating activities using the
indirect method is 1,500,000, what is the amount of cash paid for
operating activities?
A....
Which of the following is presented in the activities section of the Statement of Cash Flows?...
Which of the following is presented in the activities
section of the Statement of Cash Flows?
Purchase of a treasury bill three
months before its maturity date.
Exchange differences from translating
foreign currency denominated cash flows.
Acquisition of equipment through
issuance of short-term notes payable.
Bank overdraft that can be offset.
In the Statement of Cash Flows
of a non-financial institution, interest income received is
presented under…
a)
Operating activities
d)
A or B
b)
Financing activities
e)
A or...
Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method.
Demers Inc. reported the following data:ParticularsAmount$Net income490,000Depreciation expense52,000Gain on Disposal of equipment26,500Decrease in accounts receivable32,400Decrease in accounts payable12,350Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method
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