Provide an Appropriate Response

question 43

Essay

Provide an appropriate response.
-Explain how to determine the amount of each equal monthly mortgage payment that is going toward interest and the amount going toward principal.

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Definitions:

Indirect Method

A method of computing the net cash provided by operating activities that starts with net income and adjusts it to a cash basis. It is also known as the reconciliation method.

Inventory

Raw materials, work-in-process, and finished goods that a company holds with the intent to sell or use in production.

Wages Payable

An account that records the amounts owed to employees for work performed that have not yet been paid.

Cash Flow

The total sum of cash and cash-like assets moving in and out of a company.