Match the Letter with Each Item Below with the Following

question 17

Essay

Match the letter with each item below with the following letters to indicate how net income is adjusted when using the indirect method to determine net cash flow from operating activities.
A-Add item to net income
S-Subtract item from net income
N-No adjustment necessary
_____ decrease in property,plant,and equipment
_____ increase in accounts receivable
_____ decrease in inventory
_____ decrease in prepaid expenses
_____ increase in accounts payable
_____ decrease in accrued liabilities
_____ decrease in income tax payable
_____ increase in dividends payable
_____ gain on sales of property,plant,and equipment
_____ amortization

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Definitions:

Takt Time

The rate at which a completed product needs to be finished in order to meet customer demand.

Operation Time

The total amount of time that is required to complete a specific operation in the production process.

Work Cell

A configuration of resources in a manufacturing environment arranged for the efficient production of a product, focusing on minimizing movement and wait times, often as part of a lean manufacturing strategy.

Staff Demand

The projected need for employees in an organization to meet its goals and workload.