If salaries payable was 75000 at the beginning of the year

Assignment Help Accounting Basics

Reference no: EM13581489

1) If salaries payable was $75,000 at the beginning of the year and $40,000 at the end of the year, should $35,000 be added to or deducted from income to determine the amount of cash flows from operating activities by the indirect method? Explain.

2) A long-term investment in bonds with a cost of $800,000 was sold for $910,000 cash. (a) What was the gain or loss on the sale? (b) What was the effect of the transaction on cash flows? (c) How should the transaction be reported in the statement of cash flows if cash flows from operating activities are reported by the indirect method?

3) For the current year, Bearings Company decided to switch from the indirect method to the direct method for reporting cash flows from operating activities on the statement of cash flows. Will the change cause the amount of net cash flow from operating activities to be (a) larger, (b) smaller, or (c) the same as if the indirect method had been used? Explain.

4) Name five common major classes of operating cash receipts or operating cash payments presented on the statement of cash flows when the cash flows from operating activities are reported by the direct method.

Reference no: EM13581489

Questions Cloud

Toy country corporation produces childrens toys using a : toy country corporation produces childrens toys using a liquid plastic formula and a continuose production process. in

Thayer company purchased a building on january 2 by signing : thayer company purchased a building on january 2 by signing a long-term 2520000 mortgage with monthly payments of

The displacement of a wave traveling in the negative : the displacement of a wave traveling in the negative y-direction is dyt 5.00cm sin 6.50 y 60.0 t where y is in m

Evaluate the projects efficacy is this facility worthwhile : bender guitar corporation a manufacturer of custom electric guitars is contemplating a 1000000 investment in a new

If salaries payable was 75000 at the beginning of the year : 1 if salaries payable was 75000 at the beginning of the year and 40000 at the end of the year should 35000 be added to

The displacement of a wave traveling in the negative : the displacement of a wave traveling in the negative y-direction is dyt 5.00cm sin 6.50 y 60.0 t where y is in m

Describe the purpose of a bank transfer scheduleidentify : during your audit of miles company you prepared the following bank transfer schedule miles company bank transfer

According to many articles written on the subject the : according to many articles written on the subject the corporate world of the united states has been whacking away at

Cost of goods sold was 70 variable and 30 fixed operating : parker manufacturers produces can openers. for the first six months of 2011 the company reported the following

User Account

All Pages