Why is depreciation added to net income in the Operating Activities category of the statement of cash flows when the indirect method is used?
a. Depreciation expense is a negative amount in the Investing Activities section and therefore is a positive amount in the Operating Activities section.
b. Depreciation provides cash and therefore must be added to net income.
c. Depreciation was deducted in arriving at net income on the accrual basis of accounting; however, it did not require the use of cash.
d. Depreciation reduced the book value of plant assets and, therefore, must be reported as an investing activity.
c
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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$608,000$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 Retail Division's break-even sales is closest to:
A. $369,408 B. $584,815 C. $285,526 D. $421,526
Provide an example of a memorable message a manager might give to a subordinate.
What will be an ideal response?
Laverde Corporation has provided the following data: Year 2Year 1Inventory$185,000 $200,000 Total assets$1,489,000 $1,470,000 Sales$1,220,000 The company's total asset turnover for Year 2 is closest to:
A. 7.60 B. 1.22 C. 0.82 D. 0.13
When composing notices for a meeting, what should be included in the notice?
What will be an ideal response?