Cash Flows from Operating Activities-Indirect Method

question 160

Short Answer

Cash flows from operating activities-indirect method
In the computation of net cash flows from operating activities for 2009 by the indirect method, determine whether each of the following items would be added to net income, deducted from net income, or omitted from the computation. Indicate your answer by using the following symbols: + (added to net income), - (deducted from net income), or 0 (omitted from computation).
____ (a) A decrease in accounts payable to suppliers of merchandise during 2009.
____ (b) A loss recognized on the sale of office equipment during 2009.
____ (c) Depreciation expense for 2009.
____ (d) Dividends, declared at the end of last year, paid to shareholders during the current year.
____ (e) An increase in inventory levels during 2009.
____ (f) A decrease in accounts receivable from customers during 2009.

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Definitions:

Right Hemisphere

The half of the human brain typically associated with processing visual and spatial information, creativity, and intuition.

Auditory Perception

The process by which the brain interprets and makes sense of sound signals received by the ears.

Visual-Spatial Relationships

The understanding of how objects or symbols relate to each other in space, including their shapes, sizes, and positions.

Somatosensory Cortex

The strip of tissue at the front of the parietal lobes where touch, pressure, temperature, and pain register in the cerebral cortex.