Question : 11) When comparing net cash provided by operating activities using : 1177295

 

11) When comparing net cash provided by operating activities using the indirect versus direct method:

A) net cash is higher using the indirect method

B) net cash is lower using indirect method

C) there is no difference between the two methods

D) depreciation expense is used in the direct method.

 

12) Rick Corporation’s Accounts Receivable decreased by $25,000 during the year. What is the adjustment to the cash flow statement when it is prepared by the indirect method?

A) Subtract the decrease from the net income in operating activities.

B) Add the decrease to the net income in operating activities.

C) Add the decrease in the investing activities section.

D) Subtract the decrease in the financing activities.

 

13) Collins Corporation reported net income of $35,000; depreciation expenses of $20,000; an increase in Accounts Payable of $2,000; and an increase in Accounts Receivable of $3,000. Net cash flow from operating activities using the indirect method is:

A) $55,000.

B) $54,000.

C) $50,000.

D) $56,000.

 

14) Smith Corporation reported net income of $54,000, depreciation expenses of $10,000, an increase in Accounts Payable of $3,000 and an increase in Accounts Receivable of $1,500. Under the indirect method, net cash flow from operating activities is:

A) $62,500.

B) $59,500.

C) $48,500.

D) $65,500.

15) Trundle Corporation reported net income of $40,000; depreciation expense of $1,000; sales of additional common shares of $25,000; and a decrease in Accounts Payable of $8,000. Net cash flow from operating activities using the indirect method is:

A) $41,000.

B) $32,000.

C) $33,000.

D) $58,000.

 

16) Big Toy Corporation’s records show profit of $30,000; depreciation expense of $10,000; and cash dividends declared and paid of $5,000. The amount of cash used in operating activities using the indirect method is:

A) $40,000.

B) $30,000.

C) $20,000.

D) $10,000.

 

17) Carmen’s Candies’ Net Income was $40,000. Other accounts that changed included: Accounts Receivable decreased by $30,000; Merchandise Inventory increased by $20,000; Accounts Payable decreased by $4,000; and Salaries Payable increased by $1,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

A) $33,000.

B) $47,000.

C) $53,000.

D) $61,000.

 

18) Fidelity Furniture’s Net Income was $25,000. Other accounts that changed included: Accounts Receivable decreased by $18,000; Merchandise Inventory increased by $7,000; Accounts Payable increased by $4,000; and Salaries Payable decreased by $3,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

A) $57,000.

B) $43,000.

C) $37,000.

D) $15,000.

19) Which of the following items would be added to Net Income to compute Net Cash Flow from Operating Activities under the indirect method?

A) A decrease in Merchandise Inventory

B) A decrease in Accrued Payables

C) A decrease in Accounts Payable

D) An increase in Prepaid Insurance

 

20) The records of Ashley Boutique showed Net Loss, $30,000; Depreciation Expense, $25,000; and increase in Supplies on Hand, $5,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

A) $15,000.

B) $20,000.

C) ($10,000).

D) ($15,000).

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more