Concerning Salesforce, Inc. 2018 financials; Does the company use the indirect or direct method for preparing...

Concerning Salesforce, Inc. 2018 financials;
Does the company use the indirect or direct method for preparing the Cash flow statement?
What is the trend in cash from operations for the years presented?
What are the two largest items included in cash from investing activities?

Expert Solution

1	Direct or Indirect method :- The main difference between the direct and indirect method Is presentation, most of the organisations uses the indirect method so the Concerning Sales force Inc. may use the indirect method because the most of the companies uses the indirect method of presenting
	few examples to adjustment in indirect method of operating activities
	like adding back the depreciation
	deduct the increase in inventory
	deduct the decrease in accounts receivables

2	Trend from operations for the years presented
	Cash from operation to give different options to the company like expanding the business, purchase of the assets, dividends to the share holders , if trend shows the positive It means company will earn more profits in the near term. For a company to succeed the positive cash flow requires from operations without that cannot survive
3	largest items included in investing activities
	receipts side
	Sale of equipment / assets
	receipt of loan principle
	sale of investments in securities
	payment side
	Purchase of new assets
	making loan to other parties
	purchase of investments in securities

ekkarill92 answered 11 months ago

An essay on your understanding of the differences between the direct and indirect method of preparing...

An essay on your understanding of the differences between the direct and indirect method of preparing a cash flow statement and indicate the preferred method according to the U.S. GAAP

Indirect Method Instruction The following questions generally relate to the indirect method of preparing the statement...

Indirect Method Instruction The following questions generally relate to the indirect method of preparing the statement of cash flows. ____ 30. Refer to Indirect Method Instruction. A company sells land with a carrying value of $50,000 for $75,000. What adjustment is made to net income on the statement of cash flows? a. No adjustment this is part of investing activities b. Add $25,000 c. Add $75,000 d. Subtract $25,000 ____ 31. The rate earned on stockholders' equity (leverage formula) is...

Indirect method vs. Direct method for Cash Flow Statement The indirect method considers the opening and...

Indirect method vs. Direct method for Cash Flow Statement The indirect method considers the opening and closing balance of ledger accounts in determining the movements and computing cash flows. If there are wrong postings in the ledger account the cash flows determined are not accurate since only opening and closing balances are considered. In direct method since each line item of ledger is classified into cash and non cash it leads to accurate computation of cash flows. The indirect method...

Why do you think most companies use the Direct method although GAAP recommends the Indirect method?

A company is preparing its 2019 statement of cash flows, using the indirect method. Presented below...

A company is preparing its 2019 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Please select how each item will affect the company's statement of cash flows. Group of answer choices Purchase of land and building [ Choose ] Cash receipt in investing section Noncash investing and financing activity Deducted from net income in the operating section ...

Differentiate between the direct method and indirect method of the statement of cash flows by discussing...

Differentiate between the direct method and indirect method of the statement of cash flows by discussing the details of each Please type the answer

What method(s) of depreciation does your company use? Does the company use the same method of...

What method(s) of depreciation does your company use? Does the company use the same method of depreciation for all types of long-lived assets? Where did you find this information? Company is Target CORPORATION

P16-33A Preparing the statement of cash flows------indirect method 2018 2017 Current Assets: Cash $99,400 $25,000 Accounts...

P16-33A Preparing the statement of cash flows------indirect method 2018 2017 Current Assets: Cash $99,400 $25,000 Accounts Receivable 64,100 69,700 Mechandise Inventory 83,000 75,000 Current Liabilities: Accounts Payable 57,600 55,200 Income Tax Payable 14,800 16,800 Transaction Data for 2018: Issuance of Common Stock for Cash $38,000 Payment of notes payable $46,100 Depreciation expense 24,000 Payment of cash dividends 50,000 Purchase of equipment with cash 74,000 Issuance of notes payable to borrow cash 62,000 Acquisition of land by issuing long-term notes payable...

Chapter – Cash Flows Explain the difference between the Direct Method and the Indirect Method. What...

Chapter – Cash Flows Explain the difference between the Direct Method and the Indirect Method. What is the concept of Free Cash Flow? How would an entry showing a loss on the sale of a piece of equipment be shown on the Cash Flow Statement? Show the entry below any explanation.

Why is the use of direct and indirect channels important to Target?

Question