Indicate Whether Each of the Following Would Be Added to or Deducted

question 64

Essay

Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:
(a)Increase in prepaid expenses
(b)Amortization of patents
(c)Increase in salaries payable
(d)Gain on sale of fixed assets
(e)Decrease in accounts receivable
(f)Increase in notes receivable due in 60 days
(g)Amortization of discount on bonds payable
(h)Decrease in merchandise inventory
(i)Depreciation of fixed assets
(j)Loss on retirement of long-term debt
(k)Decrease in accounts payable
(l)Increase in notes payable due in 30 days
(m)Increase in income taxes payable

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Definitions:

Nadler-Tushman Model

A framework for organizational diagnosis that emphasizes the importance of inputs, transformational processes, and outputs within organizations, and how misalignment among these elements can lead to issues.

Freight Shipping

The transportation of goods, commodities, and cargo in bulk by ship, airplane, truck, or train.

Night Shift

The work shift that takes place during the nighttime hours.

Common Ground

A shared understanding, interests, or goals that act as a foundation for communication or cooperation among individuals or groups.