Assume the direct method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Decrease in Accounts Receivable-indicate the effect on cash receipts from sales by choosing one of the following:
A) Add to Sales to arrive at cash receipts from sales.
B) Subtract from Sales to arrive at cash receipts from sales.
C) Not used to adjust Sales to arrive at cash receipts from sales.
A
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Scenario 2.1 Use the following to answer the questions. ? Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two
hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights. ?Refer to Scenario 2.1. In Southwest Airlines' SWOT analysis, the rising gas prices are a(n) ____, while the fact that other airlines are charging for all checked baggage may create a(n) ____. A. ?threat; strength B. ?weakness; strength C. ?threat; opportunity D. ?weakness; opportunity E. ?opportunity; strength
Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period: Total CompanyRetail Division Wholesale DivisionSales$680,000$375,000 $233,000 Variable expenses$185,530$90,000 $95,530 Traceable fixed expenses$303,000$217,000 $86,000 The common fixed expenses of the company are $103,360. The Wholesale Division's break-even sales is closest to:
A. $320,949 B. $212,898 C. $584,815 D. $145,763
The basis of personal use property converted to business use is:
A. Always the lower of its adjusted basis or fair market value on the date of conversion. B. Always its adjusted basis on the date of conversion. C. Always its fair market value on the date of conversion. D. Always the higher of its adjusted basis or fair market value on the date of conversion. E. None of these.
In Ballalatak v. All Iowa Agriculture Association, where Ballalatak contended that he was fired for inquiring into whether the company was fulfilling its workers' compensation obligation and the general manager claimed he was fired for insubordination, the Iowa state supreme court held that Ballalatak:
a. could not sue for wrongful discharge because he was not fired on the same day that he made the inquiry about the injured workers' compensation b. should have been awarded damages of up to $10,000 for wrongful discharge c. could not sue for wrongful discharge because Iowa law does not protect an employee who advocates internally for another employee's workers' compensation claims d. could sue for wrongful discharge because Iowa law protects an employee who advocates internally for another employee's workers' compensation claims e. none of the other choices are correct