How can the net cash flow from operating activities be greater than net income from operating activities?
What will be an ideal response?
The accrual-based net income figure must be converted to a cash-basis equivalent to arrive at net cash flow from operating activities. Noncash expenses, such as depreciation and losses on sales of long-term assets, reduce net income but are added back to convert net income to net cash flow from operating activities. Most of the other differences between revenue and expense recognition and cash flows are related to changes in the balances of the noncash current assets and current liabilities.
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Alexis Co. reported the following information for May: Part AUnits sold 5,000unitsSelling price per unit$800 Variable manufacturing cost per unit 520 Sales commission per unit - Part A 80 What is the contribution margin for Part A?
A. $1,000,000 B. $3,000,000 C. $2,600,000 D. $1,400,000 E. $3,600,000
Companies make a year-end adjustment of the trading investment to bring the account to historical value
Indicate whether the statement is true or false
Optimal capital structure, or debt capacity, is the debt-equity mix that:
A) puts the firm at the EBIT-EPS breakeven point. B) maximizes shareholder control. C) minimizes the amount of debt held by the firm. D) maximizes the value of the firm's common equity.
Sofia files a suit against Turista Airlines, Inc Turista responds that it appears from the pleadings that the parties do not dispute the facts and the only question is how the law applies to those facts. Turista supports this response with witnesses' sworn statements. This is a?? A)?counterclaim
B)?motion for judgment on the pleadings. C)?motion for summary judgment. D)?motion to dismiss.