Cash flow from operations worked out under direct method and indirect method: options: a. will be one and same b. will be different (direct method cash flow will be higher than indirect method) c. will be different (direct method cash flow will be lower than indirect method) d, will be different to the extent of differences in depreciation between slm and wdv methods
Q: (a) The following particulars relate to hire purchase transactions: (i) Mita purchased three bikes…
A: The questions are asked about the hire purchase system. We need to compute the figures with regard…
Q: For Crane Company, units to be produced are 5,300 in quarter 1 and 7,420 in quarter 2. It takes 1.6…
A: Direct Labor Budget : Direct Labor Budget is prepared to calculate the no. of labor hours needed to…
Q: Required: a. Compute residual income for the three regions. Ignore taxes. b. How have these regions…
A: Introduction:- Calculation of gross profit ratio Gross profit ratio =Individual Divisional gross…
Q: On creating a new 100 percent-owned corporation, Ben was advised by his tax consultant to treat 50…
A: Tax advantage is the term used to describe the economic benefit that is given to some investments or…
Q: Chapter 1 - Instruction #1 Peyton Smith enjoys listening to all types of music and owns countless…
A: Income Statement :— It is one of the financial statement that shows profitability of company during…
Q: Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by…
A: Joint product costs can be allocated on the following basis 1. Net realisable value 2. Volume of…
Q: Keller Corporation (the lessee) entered into a general equipment lease with Dallo Company (the…
A: The operating lease liability is recognized at present value and interest is charged on the lease…
Q: Required a. Determine depletion for the natural resource during the year. Hint: Equipment cost is…
A: -Natural resources such as mines are accounted as wasting assets. -Depletion of wasting assets is…
Q: f a company is seeking to minimize its income tax expense, the depreciation method it would most…
A: Each company have choice to choose method of depreciation and depreciation method used must be based…
Q: What journal entry is used to write-off an uncollectible account under the allowance method?…
A: Concept of allowance method: Unlike the direct write off method, allowance account is maintained…
Q: What is the total cost of the initial tableau by NWC Rule? DESTINATION SOURCE DEMAND O 3060 O 3075 O…
A: NORT WEST CORNER RULE Nortg West Corner rule is One of the Important Method of Solving…
Q: Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5…
A: Economic value added is the measure of the financial performance of any company. It indicates the…
Q: racy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17,…
A: Journal entry is the procedure for initially documenting commercial transactions in the books of…
Q: Estimated cash receipts from: Part-time job ✓ Deposit ✓ Total cash receipts Less estimated cash…
A: Cash budget refers to the presentation of the cash receipts and payments in a particular period…
Q: Required: 1. Kristen drove the car 11,000 miles last year. Compute the average cost per mile of…
A: Variable Cost is that type of cost which varies with the change in the volume of activity. Variable…
Q: Question. Journalizing Transactions Remington Communications has been providing cellular phone…
A: Journal entry is the primary step to record the transaction in the books of accounts. The increase…
Q: . Identifying assets, liabilities and capital. Here is a list of assets and liabilities and…
A: Lets understand the basics. Financial statement is divided into three major portions which are, (1)…
Q: The following trial balance, prepared by the bookkeeper of Mason Company, does not balance. Mason…
A: The trial balance is prepared using the final balance of the ledger accounts. The debit and credit…
Q: Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet…
A: Income Statement shows the profit or income earned by a company during a particular period of time.…
Q: (a) Compute the total materials variance and the price and quantity variances. Total materials…
A: We often do variance analysis in accounting to determine the deviation from the standard situation.…
Q: The Wester Corporation produces three products with the following costs and selling prices:…
A: When there is constraint resource then contribution margin per constraint is the deciding factor.…
Q: Carmen Co. can further process Product J to produce Product D. Product J is currently selling for…
A: Differential cost is the difference between the cost of two different decisions. It is generally…
Q: Family Fun Time, Inc. makes board games. The following data pertains to the last six months:…
A: VARIABLE OVERHEADS Variable overheads cost is Constant at per Unit Basis. Variable costs are…
Q: Which of the following is a correct definition of a concept related to partnership taxation?
A: The correct answer is: (A) A partner's capital-sharing ratio is defined as the percentage of…
Q: An audit plan for noncurrent debt should include steps that require a. Inspecting the accounts…
A: Introduction:- Non-current liabilities (Non current debt):- A liability which due after one year is…
Q: Kindly answer all questions: 1.) Cost behavior is considered linear whenever a straight line is a…
A: Introduction:- Cost behavior denotes how a cost will change in total when there is a change in…
Q: Total Fixed Overhead Variance (d) Total Manufacturing Overhead Variance (a) Total Flexible…
A: The variances are the comparison of the standard performance set and actual performance acheived by…
Q: Rory Company has an old machine with a book value of $83,000 and a remaining five-year useful life.…
A: If there is increase in income by replacing, then the old machine should be replaced. If there is…
Q: financial accounting: What did you learn from this course that you have found the most useful or…
A: INTRODUCTION: Accounting is the recording of financial transactions and their storage, sorting,…
Q: Runner Company incurred the following amounts for their most recent pay period for employee gross…
A: Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a…
Q: Compute for the Current Assets Compute for the Non-current Assets Compute for the Current…
A: Non-current assets are those assets whose life is more than one year. These assets include both…
Q: Prepare a brief report advising management on the relative merits of each project. (
A: When the management regarding the decision it is important to understand that the relative major…
Q: What a Racquet, Inc. sells unique, customized tennis rackets. The results from the past year are…
A: The sales price is a combination of the total cost and markup value and the price charged to its…
Q: What is the cost of the land, based upon the following data? Land purchase price $174,323 Broker's…
A: Land improvements: The cost of land improvements includes all expenditures associated with making…
Q: McGuire prepares budgets to help manage the company. McGuire is budgeting for the fiscal year ended…
A: The amount of inventory to be purchased is one of the important decisions made by a manager for…
Q: 17-36 Roscoe & Jones, Ltd., a CPA firm in Silver Bell, Arizona, has completed the audit of the…
A: A CPA is a certified public accountant, who is someone who has earned a professional designation…
Q: June 2018, Dollarama Inc. completed a 3-for-1 stock split. Immediately before the split, the…
A: Stock split does not affect the retained earnings and paid in capital. It results in change in…
Q: Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted…
A: Cash flow from investing activity is one of the activities shown in the statement of cash flows. It…
Q: Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.50 per share cash dividend to…
A: Journal entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Williams-Santana Inc. is a manufacturer of high-tech Industrial parts that was started in 2009 by…
A: A journal is a detailed account that records all the financial transactions of a business, to be…
Q: An inexperienced accountant for Sandhill Transport Corporation showed the following in Sandhill…
A: Introduction:- Income statement shows company's income and expenses over a period of time. Formula…
Q: Which of the following statements is true with respect to plant assets? Plant assets are expected…
A: Assets are the resources held and owned by the business entities. These are shown on the asset side…
Q: Buyer purchased a group Blouses at the following costs: 10 units @ $32.00, 20 units @ $28.00 and 16…
A:
Q: Make the Statement of Financial Position by making the Statement of Income and Statement of Equity.…
A: The Inventory is to be calculated as- Inventory: Raw Materials $ 24,000 Work in…
Q: Current Attempt in Progress In its first year of operations, Riverbed Corp. purchased…
A: Journal entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Stone Industries gathered the following information for the year ended June 30, 20X5 Units…
A:
Q: Q. XYZ Company owns 80% of Emerald and Emerald owns 90% of Sapphire, Inc. Separate operating income…
A: INTRODUCTION: Net income is the sum of accounting profit that a firm has left over after deducting…
Q: When purchasing shares is it preferrable to purchase in anticipation of appreciation or of…
A: When it comes to investing in stocks, there is no one-size-fits-all approach that will work for…
Q: If costs are rising, which inventory costing method will result in the lowest income tax expense for…
A: Inventory is very necessary in the business but method of valuation decide the cost of goods sold…
Q: Conclude and explain, with reference to the IPPF (code of ethics or standards) whether it is…
A: Explanation: A code of ethics is a set of rules that are meant to help professionals do business…
options:
a. will be one and same
b. will be different (direct method cash flow will be higher than indirect method)
c. will be different (direct method cash flow will be lower than indirect method)
d, will be different to the extent of differences in
Step by step
Solved in 5 steps
- FAR- Conceptual Framework Kindly help me answer the following : 1. Which of the following should be considered a current value measure? * a. Replacement cost and discounted cash flow b. Replacement cost and exit value c. Replacement cost, exit value and discounted cash flow d. Exit value and discounted cash flow 2. Obligations to transfer an economic resource include all, except * a. Obligation to provide services b. Obligation to pay cash c. Obligation to transfer an economic resource even if a specified future event does not occur d. Obligation to deliver goods 3. Which is not a purpose of the Conceptual Framework? * a. To assist accountants in selecting among alternative accounting and reporting methods. b. To provide definitions of key terms and concepts. c. To assist IASB in the standard-setting process. d. To provide specific guidelines for resolving situations not…All of the followings are True when the net present value method is used to choose between two investment alternatives, except: OA All cash inflows and outflows should be considered in calculating the net present value of the two alternatives. OB. Oc The net present value of the two alternatives calculated using the total cost approach need to be compared. Managers should choose the alternative that has the least total cost from a present value perspective. The relevant cash flows should be isolated from the irrelevant cash flows. OD.1.True or flase . Even thugh thr amounts and timing of the cash flow may differ, the appropiate LCM rate makes equal in economic sense. 2. true or false. when only costs are involed. The AE method is called the project equivalent cost? 3. true or false. the cost fro a depreciable asset is the invoice cost fot he asset
- In the discounted cash flow (DCF) method, which of the following is the correct formula for calculating Unlevered Free Cash Flows (UFCF)? A)EBIT (1-tax rate) + Depreciation and Amortization (D&A) + Investment in Net Working Capital (\Delta NWC) + Capital Expenditure (CapEx) B)EBIT (1-tax rate) – D&A – \Delta NWC – CapEx C)EBIT (1-tax rate) + D&A – \Delta NWC + CapEx D)EBIT (1-tax rate) + D&A – \Delta NWC – CapEx E)EBIT (1-tax rate) – D&A + \Delta NWC + CapExWhile calculating Free Cash Flow (FCF), capital investment expenditure is : a Subtracted from from EBIT(1-t) +(Depreciation +Amortization) b Subtracted from EBT. c Subtracted from EBIT(1-t) d Subtracted from EBIT.The depreciation cost is included in the cash flow analysis since it is a book cost Select one: True O False
- The present value of cash flows in Investment A is lower than the present value of cash flows in Investment B. O C. The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B. O D. No comparison can be made-we need to know the cash flows to calculate the present value.Which of the following phrases best describes the term " actual cash value"? a. market value b. appraised value c. replacement cost less depreciation d. original cost less depreciationWhich of the following does nor assign a value to a business opportunity using time-value measurement tools? A. internal rate of return (IRR) method B. net present value (NPV) C. discounted cash flow model D. payback period method
- Describe the Replacement Analysis Using the Cash-Flow approach?is the difference between the gross present value of the benefits of that action and the amount of investment required to achieve those benefits Oa. Net Present Value (NPV) Ob. Economic value added (EVA) OC Internal Rate of Return (IRR) d. Discounted Cash FlowThis can occur when a selection among mutually exclusive alternatives is based wrongly on maximization of IRR on the total cash flow. O a. Investment errors O b. Ranking errors Ос. Incremental errors Od. Alternative errors