Under the indirect method, which of the following is not an item that is added back to net income in determining net cash flow from operating activities?
A. Decrease in accounts receivable
B. Decrease in inventory
C. Gain on sale of store fixtures
D. Depreciation expense
Answer: C
You might also like to view...
Your research shows that over 53% of all purchases are made on impulse. As you sit down with your packaging design team, you tell them that the package must communicate many of the sales tasks
List the sales tasks that packaging must now incorporate due to the increase in self-service sales.
During ________ the company receives materials it needs to manufacture its products
A) inbound logistics B) operations C) outbound logistics D) marketing and sales E) service
DHF Company has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.00% versus a required return on an average stock of 10.00%. Now the required return on an average stock increases by 30.0% (not percentage points). Neither betas nor the risk-free rate change. What would DHF's new required return be?
A. 14.89% B. 15.68% C. 16.50% D. 17.33% E. 18.19%
On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 1,660,000 yen. The exchange rate was $0.00853 per yen on the date of sale. On December 31, when Higgins prepared its financial statements, the exchange rate was $0.00859. Kagome paid in full on January 12, when the exchange rate was $0.00877. On December 31, Higgins should prepare the following journal entry:
A. Debit Accounts Receivable-Kagome $99.6; credit Foreign Exchange Gain $99.6. B. Debit Foreign Exchange Loss $99.6; Accounts Receivable-Kagome $99.6. C. Debit Sales $99.6; credit Foreign Exchange Gain $99.6. D. Debit Foreign Exchange Loss $99.6; credit Sales $99.6. E. No journal entry is required until the amount is collected.