Which of the following items would be subtracted from net income when using in?

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Which of the following items would be subtracted from net income when using the indirect method of calculating cash flows provided by operating activities?

C.

Gain on sale of machinery

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Right Answer is: C

SOLUTION

Gain on sale of machinery  would be subtracted from net income when using the indirect method of calculating cash flows provided by operating activities.

Related Questions

A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements:

​ End of this year End of prior year
Accounts receivable $115,000 $100,000
Cost of goods sold 560,000 ​
Sales revenue 830,000 ​
Accounts payable* 75,000 67,000
Inventory 88,000​ 107,000​
Salary payable 13,000 10,000
Salary expense 49,000 45,000

*Relates solely to the acquisition of inventory

What will appear in the operating activities section related to inventory?

A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements:

​ End of this year End of prior year
Accounts receivable $125,000​ $100,000​
Cost of goods sold 560,000 ​
Sales revenue 830,000 ​
Accounts payable* 75,000 67,000
Inventory 86,000 105,000
Salary payable 13,000 10,000
Salary expense 49,000 45,000

*Relates solely to the acquisition of inventory

What will appear in the operating activities section related to accounts receivable?

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73. Which of the following items wouldnotbe included in the calculation of cash flowsprovided by operating activities using the indirect method?Unit 13-2, LO2 – D

LO: 2, Bloom: C, Unit: 13-2, Difficulty: Difficult, Min: 2, AACSB: Analytic, AICPA FN: Measurement, AICPA PC:Problem Solving and Decision Making, IMA: Reporting74. Which of the following items wouldnotbe included in the calculation of cash flowsprovided by operating activities using the indirect method?a.Purchasing supplies on accountb.Net incomec.Depreciation expensed.Gain on the sale of equipmentUnit 13-2, LO2 – A

LO: 2, Bloom: C, Unit: 13-2, Difficulty: Difficult, Min: 2, AACSB: Analytic, AICPA FN: Measurement, AICPA PC:Problem Solving and Decision Making, IMA: Reporting75. Michael’s Industries reported net income of $10,000 and paid cash dividends of $2,000.Changes in balanced sheet accounts for the year were as follows:Increase(Decrease)Accounts receivable($5,000)Inventory3,000Property, plant and equipment15,000Accumulated depreciation3,000Accounts payable6,000Accrued liabilities(2,000)Based on the above information, what is the amount of net cash provided by operations?Unit 13-2, LO2 – C

LO: 2, Bloom: AP, Unit: 13-2, Difficulty: Moderate, Min: 4, AACSB: Analytic, AICPA FN: Measurement, AICPA PC:Problem Solving and Decision Making, IMA: Reporting

Which of the following would be subtracted from net income when using the indirect method?

Which of the following items would be subtracted from net income?

Which of the following items would be subtracted from net income to compute net cash flow from operating activities?

Which of the following items would be subtracted from net income when reporting cash flows?