Question
Asked Dec 20, 2019
1 views

A retail business, using the accrual method of accounting, owed merchandise creditors (accounts payable) $320,000 at the beginning of the year and
$350,000 at the end of the year. How would the $30,000 increase be used to adjust net income in determining the amount of cash flows from operating
activities by the indirect method?

check_circle

Expert Answer

Step 1

Statement of cash flows: It is one of the financial statements that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the oper...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Identifying steps in the accounting cycle Review the steps in the accounting cycle, and answer the f...

A: Accounting Cycle: The accounting cycle refers to the entire process of recording the accounting tran...

question_answer

Q: Averill Products Inc. reported the following on the company's income statement in two recent years: ...

A: a. Calculate the time interest earned ratio for the current year and the prior year

question_answer

Q: Reinhardt Furniture Company has 40,000 shares of cumulative preferred 2% stock, $150 par, and 100,00...

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to r...

question_answer

Q: On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,0...

A: 1.

question_answer

Q: Tommy Gunn is a division manager for K-Cern Inc., a small pharmaceutical company. Tommy’s division h...

A:  

question_answer

Q: Using the bond from Practice Exercise 14-5B, journalize the first interest payment and the amortizat...

A: Prepare journal entry for issuance of bonds.

question_answer

Q: Austin Sound sold inventory for $300,000, terms 2/10, n/30. Cost of goods sold was $152,000. How muc...

A: Click to see the answer

question_answer

Q: What are the two types of inventory accounting systems? Briefly describe each.

A: Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to con...

question_answer

Q: If a business had a net loss for the year, where would the net loss be reported on the worksheet?

A: Worksheet: A worksheet is a spreadsheet used while preparing a financial statement. It is a type of ...