Reference no: EM13913489
1. Using the indirect method, calculate the amount of net cash flows from operating activities from the following data, show your work.
2. Why is the statement of cash flows useful to a manager?
Net Income for the year 100,000 Beginning Accounts Payable $6,000
Beginning Accounts Receivable 10,000 Ending Accounts Payable 5,600
Ending Accounts Receivable 8,800 Depreciations Expense 20,400
Beginning Prepaid Expense 2,000 Amortization of Intangible Assets 1,600
Ending Prepaid Expense 2,800 Dividends, declared and paid 4,400
When comparing mutually exclusive projects
: The internal rate of return: A) may produce multiple rates of return when cash flows are conventional. B) is best used when comparing mutually exclusive projects. C) is rarely used in business world today.
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Why is the statement of cash flows useful to a manager
: Using the indirect method, calculate the amount of net cash flows from operating activities from the following data, show your work.
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