Why an adjustment might be necessary to reconcile net income

Assignment Help Financial Accounting
Reference no: EM132906591

Problem 1: Select a publicly traded company and access its most recent financial statements, form 10-K. Include the name of the company in your subject line, and do not choose a company about which one of your classmates has already posted. Navigate to the notes to the financial statements and locate the company's note on their statement of cash flows that was prepared using an indirect method. Discuss an item that was included when calculating net income but is adjusted as an increase or decrease to determine cash provided by (used in/by) operating activities. Specifically an asset, liability, gain, or loss. Include a summary of how that item impacted net income (or net loss) and why an adjustment might be necessary to reconcile net income to net cash flows from operations.

Reference no: EM132906591

Questions Cloud

Summarize the financial weaknesses of the business : Discuss the major differences between the net income and the cash provided or used by operating activities, and explain the cause of the major difference
What is the EOQ for custom microchips : Each chip costs Webster $200, and it must also pay its supplier a $1,000 setup fee on each order; What is the EOQ for custom microchips
Most confident as way to invest in your future : Discuss one of the ways you feel most confident as a way to invest in your future. Explain your level of confidence.
Write the formula for the total costs of carrying inventory : Write out the formula for the total costs of carrying and ordering inventory, and then use the formula to derive the EOQ model
Why an adjustment might be necessary to reconcile net income : How that item impacted net income (or net loss) and why an adjustment might be necessary to reconcile net income to net cash flows from operations.
What assumptions underlie the EOQ model : As her assistant, you have been asked to help her by answering the following questions: What assumptions underlie the EOQ model
What information is found on statement of cash flows : What one piece of information is found on statement of cash flows that is just as important as the bank balance (or more so) for the purpose of understanding.
Why is inventory management vital to the financial health : As her assistant, you have been asked to help her by answering the following questions: Why is inventory management vital to the financial health of most firms
Organization can leverage mobile technologies : Are there any other ways that the organization can leverage mobile technologies to attract visitors, Increase ticket sales and improve the economy of the region

Reviews

Write a Review

Financial Accounting Questions & Answers

  Describe an audit procedure that might detect lapping

In the audit of a client's financial statements, the auditors must be concerned with the possibility that client personnel might be engaged in kiting or lapping. Define lapping and describe an audit procedure that might detect lapping. Define kiting ..

  Find the size monthly payment

They are considering an interest rate o compounded monthly. If Daljeet were to take 20 years to repay the mortgage, find the size monthly payment

  Determine ideal cost of equity

Ideal has 1,000,000 common shares with a market price of $2 each. Determine Ideal's cost of equity, cost of debt as well as the weighted average cost of capital

  Understanding of organizational risks-mitigate those risks

This Discussion will assess your understanding of organizational risks and ways to mitigate those risks. Briefly discuss at least three risk factors that may be prevalent in a manufacturing entity’s inventory management, and recommend an internal con..

  Describe how events should be accounted

Describe how these events should be accounted for in the 2022 financial statements. If needed prepare required journal entries.

  Determine the estimated residual value to be used

Recommend the estimated equipment life to be used (however, use management's assumptions of a 15-year useful life when calculating depreciation expense)

  What amount of net income on the income statement for year

What is the amount of net income on the income statement for the year? A company's financial records at the end of the year amounts

  Companies use the periodic inventory system

Journalize these transactions, first on the books of Arnold Drug Stores and second on the books of Gerson Pharmaceuticals. Assume both companies use the periodic inventory system.

  The first year if they organize the business as partnership

Jerry and Matt decide to form a business. Jerry will contribute $4,200 for a 35% interest and Matt will contribute $7,800 for a 65% interest. The business will take out a $25,000 loan to cover the balance of their working capital needs. What is Matt'..

  What type of error could you be making

What type of error could you be making in the context of the above question? Can we conclude process B more likely to differ from industry standards

  Discuss the apparent differences in order of presentation

Discuss the apparent differences in the order of presentation of the components of liabilities and shareholders' equity between IFRS as applied by British Airways and a typical balance sheet prepared in accordance with U.S. GAAP.

  Accounted for under effective interest method

The bonds pay interest semi-annually on June 30 and December 31 of each year. The bonds are to be accounted for under the effective interest method.

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