Question

In: Finance

25.Changes in depreciation expense do not affect operating income because depreciation is a non-cash expense. a....

25.Changes in depreciation expense do not affect operating income because depreciation is a non-cash expense.

a. True

b. False

Solutions

Expert Solution


jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Why is depreciation considered a non-cash expense? Provide some examples of non-cash expenses and explain if...
Why is depreciation considered a non-cash expense? Provide some examples of non-cash expenses and explain if should be considered when making decisions for purchasing capital assets. Why or why not.
Question: Based on the following transactions, complete this income statement: Sales: Operating Expense: Depreciation Expense: EBIT:...
Question: Based on the following transactions, complete this income statement: Sales: Operating Expense: Depreciation Expense: EBIT: Intresrest Expense: Pre-tax Income: Taxes: Net Income: Dividened: Paid to Retained Earning: 1. Earn $85,000 in sales revenue: $40,000 into Accounts Receivable and $45,000 in cash. 2. The sales require $50,000 worth of existing inventory. $20,000 of additional inventory is purchased on credit and applied to the Accounts Payable. 3. $30,000 is collected from Accounts Recievable. 4. $35,000 of the Accounts Payable is due...
25.Which of the following items does not affect the calculation of depreciation expense? A.Economic benefits generated...
25.Which of the following items does not affect the calculation of depreciation expense? A.Economic benefits generated by the asset B.Useful life of the asset C.Residual value of the asset D.Capitalized cost of the asset 26.Which of the following statements is correct when the straight-line method is used to compute depreciation? A.The carrying value of an asset is a constant amount during the asset's useful life B.Accumulated depreciation is a constant amount during the asset's estimated useful life C.Depreciation Expense is...
The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore...
The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore is 100% equity financed, and it faces a 35% tax rate. What is the company's net income? $   Assuming no changes to any of the Balance Sheet accounts, what is its net cash flow? $  
The Boss Corporation has operating income (EBIT) of $750,000. The company's depreciation expense is $200,000. Boss...
The Boss Corporation has operating income (EBIT) of $750,000. The company's depreciation expense is $200,000. Boss Corp. is 100% equity financed, and it faces a 40% tax rate. They invested $100,000 in Net Fixed Assets, and $25,000 in additional working capital. what are the company's net income, its net cash flow, operating cash flow and cash flow from assets? net income = $450,000; operating cash flow = $650,000; cash flow from assets = $525,000 1. How much was cash flow...
Sales 573967 Operating Cost 404380 Depreciation 10000 Interest Expense 5000 Tax Expense 29408 Cash 1000 Receivables...
Sales 573967 Operating Cost 404380 Depreciation 10000 Interest Expense 5000 Tax Expense 29408 Cash 1000 Receivables 30000 Inventories 67396 Fixed Assets, Net 50000 Payables 11000 Accrued Expenses 10000 Long-Term Loan 50000 Common Equity 77396 I need to know the following from the balance sheet above: 1. Current Ratio 2. Quick Ratio 3. Working capital to assets 4. Ratio of total debt and liabilities to total assets 5. Ratio of total debt and liabilities to shareholders equity 6. Interest Coverage 7....
Moore Inc.'s net income last year was $56,000 including depreciation expense of $23,000. Changes in selected...
Moore Inc.'s net income last year was $56,000 including depreciation expense of $23,000. Changes in selected balance sheet accounts for the year appear below: Increases (Decreases) Accounts receivable (8,000) Inventory 6,000 Accounts payable 2,000 Based on this information, the net cash flows from operating activities under the indirect method would be Question 4 options: $75,000 $83,000 $95,000 $60,000
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its...
1) Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was...
1) Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT