Howard Company Uses the Direct Method to Prepare Its Operating

question 37

Essay

Howard Company 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 that the income statement is not affected. 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 that the cash flow statement is not affected.
At the beginning of the current year, Howard Company paid cash to purchase equipment costing $80,000. There was $10,000 of depreciation expense recognized during the accounting period. (Show the combined effects of these two events.)

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Definitions:

Power

The aptitude or competence to sway the decisions of individuals or alter the flow of occurrences.

Force

An interaction that, when unopposed, changes the motion of an object, described in terms of magnitude and direction.

Conflict Theorists

Sociologists who focus on the power differentials, inequality, and social conflicts in society, viewing them as the catalyst for social change.

Proletariat

The class of wage-earners in a capitalist society whose only significant material value is their labor power; a member of such a class is typically lacking in capital and property ownership.