Adjustment to net income using the indirect method

Assignment Help Financial Management
Reference no: EM131589536

If the company shows a decrease of $10,000 in Accounts Payable from one year’s balance sheet to the next, what would be the adjustment to net income using the indirect method?

a. No change to cash flow

b. Decrease cash flow by $10,000

c. Increase cash flow by $10,000

Reference no: EM131589536

Questions Cloud

What must be the one year forward exchange rate : what must be the one year forward exchange rate?
What was the bank franc rate of return : The borrower repaid euros at loan maturity and when the loan was repaid the exchange rate was 1.98 francs per dollar. What was the bank's franc rate of return?
What is the current exchange rate of us dollars for yen : If purchasing power parity holds, what is the current exchange rate of U.S. dollars for yen?
What was the bank dollar rate of return : What was the bank's dollar rate of return?
Adjustment to net income using the indirect method : what would be the adjustment to net income using the indirect method?
Define the terms finance and financial management : Define the terms finance and financial management and explain what are the major sub-areas of finance.
General electric will face in its foreign operation : Evaluate the risk that General Electric will face in its foreign operation and examine the profit opportunities for GE can arise out of these risks?
Investor account balance as a result of the price drop : What will be the value of the investor's account balance as a result of the price drop?
Economy to secure prosperity : Along with efficiency policy makers want to ensure that these resources are allocated evenly throughout the economy to secure prosperity for the society."

Reviews

Write a Review

Financial Management Questions & Answers

  What will be the net change in the cash conversion cycle

Bredan Ltd has annual sales of $200 milion with a cost of goods sold of $150 million. They keep an average inventory of $60 millon. On average, the firm has accounts receivable of $50 million. If sales can be maintained at existing levels but invento..

  Determine the markup as a percentage of the selling price

A manufacturing company has fixed costs of $120,000 per month and variable costs of $6 per unit. Determine the break even quantity for each of these price points. Determine the markup as a percentage of the selling price when the cost is $7 and the s..

  Considering the purchase of new food packaging system

Ms. Child is considering the purchase of a new food packaging system. What is the equivalent uniform annual worth (EUAW) of this system?

  Assume annual payments and zero prepayment rate

An investor is consdering the purchase of either an IO and PO from CMO offering. The portion of the mortgage pool backing is 10 years and an 8% interest rate. Assume annual payments and a zero prepayment rate

  Annual percentage increase in winner check over period

What was the annual percentage increase in the winner’s check over this period?

  What is the amount of bid using borrowing and lending

What is the amount of bid using Options contract and how much of the revenue is exposed and what is the amount of bid using Borrowing and Lending

  Calculate per unit variable cost and break even volume

Foods Inc (FI) sells 5 million units per year of its only product (SuperFood) through a major retailer. SuperFoods’ retail price is $5 per unit which included a margin to the retailer of 20%. SuperFoods’ manufacturing cost is $2 per unit. Calculate S..

  What is the present value of company with WACC

What is the present value of a company with a WACC of 12%, and the following cash flows for years 1 to 5,

  What is value of the current assets

Sunset, Inc., has a book value of equity of $13,500. Long-term debt is $7,700. Net working capital, other than cash, is $1,990. Fixed assets are $18,450 and current liabilities are $1,670. How much cash does the company have? What is the value of the..

  What is penetration pricing

What is penetration pricing? Provide an example of a company that has used penetration pricing to introduce a new product. What was the product? Brainstorm five creative ways for a small business with a low budget to advertise and promote its product..

  Calculate required rate of return on constant growth stock

Calculate the maximum price that you would pay for a ‘constant growth’ stock that has the following characteristics: (a) Dividend: $1.50 (will pay), (b) Growth Rate: 5%, and (c) Required Rate of Return: 10%. Calculate the required rate of return on t..

  How many francs would a dollar buy tomorrow

Suppose that the exchange rate is 0.85 dollars per Swiss franc. If the franc appreciated 12% against the dollar, how many francs would a dollar buy tomorrow?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd