Use the information below to answer the following question(s):Howard Co. uses the direct method to prepare its operating activities section of the statement of cash flows. Indicate how each event affects net income and the three types of activities on the statement of cash flows. In the net income column, use the letter "I" to indicate increase, the letter "D" to indicate decrease, and the letters "NA" to indicate no effect on net income. In the three cash flow columns, use the letter "I" to indicate cash inflow, the letter "D" to indicate cash outflow, and the letters "NA" to indicate no effect on cash flows.On July 6, Year 1, Howard Co. received an interest check relating to a note receivable. The interest revenue had not been previously accrued.
src="https://sciemce.com/media/4/ppg__10826191638__f1q10g1.jpg" alt="" style="vertical-align: 0.0px;" height="66" width="467" />
What will be an ideal response?
(I) (I) (NA) (NA)
Cash flows reported as operating activities include cash receipts from revenues, including interest revenue. The receipt of the interest check increases net income and is reported as a cash inflow in the operating activities section of the statement of cash flows.
Business
src="https://sciemce.com/media/4/ppg__10826191638__f1q10g1.jpg" alt="" style="vertical-align: 0.0px;" height="66" width="467" />
What will be an ideal response?
(I) (I) (NA) (NA)
Cash flows reported as operating activities include cash receipts from revenues, including interest revenue. The receipt of the interest check increases net income and is reported as a cash inflow in the operating activities section of the statement of cash flows.
You might also like to view...
If the maker of a promissory note fails to pay the note on the due date, the note is said to be
a. displaced b. disallowed c. dishonored d. discounted
One of the first steps in choosing an HRIS is for the HR personnel to
A. evaluate the most time-consuming tasks. B. examine the user-friendliness of the software. C. calculate the cost savings in using an HRIS. D. calculate the time required to train the HR staff.
What is aging of accounts receivable, and how is it used to account for uncollectible accounts?
What will be an ideal response?
What are any three common heuristics that can be used to schedule resources in a multi-project environment? Comment on their advantages and disadvantages
What will be an ideal response?