Indicate whether each item should be added to or subtracted from net income to arrive at the net cash flow from operating activities. a. Increase in inventory b. Amortization of discount on investment in bonds c. Decrease in accounts payable d. Amortization of discount on bonds payable e. Increase in salaries payable f. Increase in prepaid expenses g. Subsidiary loss under the equity method h. Gain on disposal of equipment i. Decrease in accounts receivable j. Increase in deferred tax liability
Indicate whether each item should be added to or subtracted from net income to arrive at the net cash flow from operating activities. a. Increase in inventory b. Amortization of discount on investment in bonds c. Decrease in accounts payable d. Amortization of discount on bonds payable e. Increase in salaries payable f. Increase in prepaid expenses g. Subsidiary loss under the equity method h. Gain on disposal of equipment i. Decrease in accounts receivable j. Increase in deferred tax liability
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.10E
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Indicate whether each item should be added to or subtracted from net income to arrive at the net
a. | Increase in inventory | |
b. | Amortization of discount on investment in bonds | |
c. | Decrease in accounts payable | |
d. | Amortization of discount on bonds payable | |
e. | Increase in salaries payable | |
f. | Increase in prepaid expenses | |
g. | Subsidiary loss under the equity method | |
h. | Gain on disposal of equipment | |
i. | Decrease in |
|
j. | Increase in |
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