Homework Answers
Decrease in accounts receivable will lead to inflow of cash.
Increase in inventories will lead to decrease in cash balance due to the purchase of the inventory.
Increase in accounts payable will lead to savings in cash.
So, Increase in cash flow will be caused by I & III.
So, Option "D" is correct.
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Question 1 5 points Which of the following changes in working capital accounts will result in...
Keeping all else constant, which of the following will decrease net working capital: I. decrease in...
Keeping all else constant, which of the following will decrease net working capital: I. decrease in accounts receivable II. increase in inventory III. decrease in cash IV. increase in accounts payable
1- which one of the following is not included in net working capital? A) account receivable...
1- which one of the following is not included in net working capital? A) account receivable , B) retained earnings, C) cash and cash equivalent , D) prepaid expenses, E) Account payable. 2- Depreciation does which one of the following for a profitable firm? A) has no effect on net income, B) decrease net working capital, C) decrease net income, D) increase net income, E) increase taxes 3- a firm has a current ratio 0.9, given this you know for...
Reflective Therapy Inc. has the following changes to its comparative statement of financial position from the...
Reflective Therapy Inc. has the following changes to its comparative statement of financial position from the previous year: For each of the changes listed below indicate whether the impact to the reconciliation of operating cash flows using the indirect method would be an increase or decrease on cash flows, or not applicable. Increase in royalty receivables a. b. Increase in accounts payable c. Decrease in prepaid taxes d. Increase in other current liabilities e. Increase in property, plant and equipment...
Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new machine...
Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $919,000 and total current liabilities of $645,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted. Change +$44,000 Account Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash - 13,000 + 89,000 +...
Reflective Therapy Inc. has the following changes to its comparative statement of financial position from the...
Reflective Therapy Inc. has the following changes to its
comparative statement of financial position from the previous
year:
For each of the changes listed below indicate whether the impact to
the reconciliation of operating cash flows using the indirect
method would be an increase or decrease on cash flows, or not
applicable.
a.
Increase in royalty
receivables
IncreaseDecreaseNot Applicable
b.
Increase in accounts
payable
IncreaseDecreaseNot Applicable
c.
Decrease in prepaid
taxes
IncreaseDecreaseNot Applicable
d.
Increase in other current
liabilities
IncreaseDecreaseNot...
Given the items below, which of the following is an addition to net income to arrive...
Given the items below, which of the following is an addition to net income to arrive at operating cash flows using the indirect method? I. Loss on sale of assets II. Increase in Supplies III. Increase in Accounts Payable IV. Increase in Accounts Receivable a. I. and III. b. I. only. c. III. and IV. d. II. and III.
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are...
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Redon Corp.: Cash Short-term investments Accounts receivable Inventory Prepaid Insurance Accounts payable Taxes payable Salaries and wages payable Short-term loans payable Required: $69,000 58,000 72,000 100,000 10,000 75,000 25,000 40,000 210,000 1. Use the information provided to compute the amount of working capital and Redon's current and quick ratios (round to three decimal points). Use the minus sign to...
Which of the following is a goal of working capital management? To ensure liquidity and increase...
Which of the following is a goal of working capital management? To ensure liquidity and increase cash holding costs To balance adequate cash flow against maximal returns To minimize free working capital and maximize opportunity costs To lengthen the span of time between payment of accounts payable and collection of accounts receivable
Amount Descriptions Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Decrease in prepaid...
Amount Descriptions
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Net cash flow from operating activities
Net cash flow used for operating activities
Net income
Net loss
The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount...
QUESTION 4 The recognition of a revenue would most likely be accompanied by which of the...
QUESTION 4 The recognition of a revenue would most likely be accompanied by which of the following? A. a decrease in assets B. an increase in assets C. the contribution of capital by an owner D. an increase in liabilities E. none of the other answers provided are correct 1 points QUESTION 5 A gain on the disposal of a fixed asset will increase the following on the company’s income statement A. COGS B. Non-operating Income (Loss) C. Net...
Reflective Therapy Inc. has the following changes to its comparative statement of financial position from the previous year: For each of the changes listed below indicate whether the impact to the reconciliation of operating cash flows using the indirect method would be an increase or decrease on cash flows, or not applicable. Increase in royalty receivables a. b. Increase in accounts payable c. Decrease in prepaid taxes d. Increase in other current liabilities e. Increase in property, plant and equipment...
Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $919,000 and total current liabilities of $645,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted. Change +$44,000 Account Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash - 13,000 + 89,000 +...
Reflective Therapy Inc. has the following changes to its
comparative statement of financial position from the previous
year:
For each of the changes listed below indicate whether the impact to
the reconciliation of operating cash flows using the indirect
method would be an increase or decrease on cash flows, or not
applicable.
a.
Increase in royalty
receivables
IncreaseDecreaseNot Applicable
b.
Increase in accounts
payable
IncreaseDecreaseNot Applicable
c.
Decrease in prepaid
taxes
IncreaseDecreaseNot Applicable
d.
Increase in other current
liabilities
IncreaseDecreaseNot...
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Redon Corp.: Cash Short-term investments Accounts receivable Inventory Prepaid Insurance Accounts payable Taxes payable Salaries and wages payable Short-term loans payable Required: $69,000 58,000 72,000 100,000 10,000 75,000 25,000 40,000 210,000 1. Use the information provided to compute the amount of working capital and Redon's current and quick ratios (round to three decimal points). Use the minus sign to...
Amount Descriptions
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Net cash flow from operating activities
Net cash flow used for operating activities
Net income
Net loss
The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount...
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