Fizzzle Inc sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale. How should this gain be treated when preparing the operating activities section of the statement of cash flows using the indirect method?
a. A sale of equipment is an investing activity; the transaction will not affect the operating activities section.
b. The gain is added back to net income in the operating activities section.
c. The gain is subtracted from net income in the operating activities section.
d. The entire sales price is subtracted from net income in the operating activities section.
C
You might also like to view...
One way that existing relationships change the negotiation dynamic is that negotiating within relationships may never end.
Answer the following statement true (T) or false (F)
The chief executive officer (CEO) of a nonprofit organization is preparing a data information system to monitor if organizational programs are meeting the established goal. The CEO is controlling his organization’s performance through the use of ______ measures.
A. input B. impact C. mimetic D. outcome
When a client breaches a contract with a construction contractor before construction begins,
what is the contractor generally able to recover? A) The amount necessary to provide the same profit to the contractor that the contractor would have earned if the contract were fully performed B) Only the out-of-pocket costs incurred by the contractor up to the time of the breach C) The amount determined by the court to have been a fair profit on the contract D) The amount of the contract price E) Three times the contract price as punitive damages
County Medical Center has a good track record of treating patients well and discharging them in a timely manner. Then, in the span of one week, twelve patients suffer post-surgical bacterial infections that are resistant to drug treatment. Shortly afterward, the surgical and patient recovery teams gather to discuss the problem. One cardiac surgeon, Yvette, mentions that she read in a medical journal about a simple but effective method of reducing such infections. It involves encouraging and enforcing hand washing before all new patient contact. The key is to post reminders in every patient room and nurse station. There is also a smart phone app that will beep once every five minutes as a backup reminder. The hospital staff agrees to implement the protocol, and six months later the rate of
infection has dropped by more than 50 percent. The hospital is striving to create a ________ culture. A. diversity B. customer service C. fragmented D. safety E. sustainability