Cash flow statement complements the income statement and the balance sheet summarizing all cash inflows and outflow transactions in the company within the given financial year. However, there are two different methods of preparing the cash flow statement – direct and indirect. Enlist the differences between Direct and Indirect method of cash flow statement

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A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning in...

Q: Front Range Cabinet Distributors in Colorado Springs, Colorado, sells to its contractors with a 48% ...

A: Selling Price = Cost + Markup where, Markup = Cost x Markup %

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A: The income statement is prepared to find net income or losses incurred during the period.

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A: Partnership liquidation is the official ending of a partnership agreement. It is a process of closin...

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A: Since the manufacturing company uses a predetermined overhead rate based on direct labor hours to al...

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A: Formula Used : Sales revenue = Selling price per unit x Number of units sold Operating Income = Sale...

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A: Present value is the current value of a future amount (sum of money). It also can be cash flows with...

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A: The journal entries are prepared to record day to day transactions of the business. Under perpetual ...

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A: Decentralization: Decentralization alludes to a particular type of authoritative construction where ...

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A: This question requires us to calculate Stephanie's Bridal Shoppe Operating Income when 200 dresses a...

Q: Outline the goals to be accomplished by the presentation of cash flow information to investors.

A: In addition to the income statement and balance sheet, the cash flow statement is a financial statem...

Q: A. Storage Shelf; the $10 discount is greater than the $5 discount. B. Storage shelf; the markdown r...

A: Markdown The Calculation of Markdown is to the original selling price of the product with the discou...

Q: From the information given below, complete the corrected trial balance of C. Canada Manufacturers. T...

A: Trial balance refers to the third step in accounting process, which signifies the summarisation of f...

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A: Formula: Accounting Equation: Assets = Liabilities + Owners equity

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A: "Since you have posted a question with multiple sub parts,we will solve first three sub parts for yo...

Q: Current accounting standards require that the discount rate used for pension plans be:   Multiple ...

A: As per IAS 19 discount rate used for pension plans be considered as following 

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A: Under dividend discount model, all the future dividends of a company are discounted at required rate...

Q: Review the following independent auditors’ report: To the Board of Directors and Shareholders Comp...

A: Introduction:- An audit is defined as a "independent study of financial information of any company, ...

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A: 1. Balance Sheet - This Statement shows the balance of assets liabilities and Equity as at the balan...

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A: Journal entry - It refers to the process where the business transactions are recorded in the books o...

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A: The journal entries are prepared to keep the record of day to day transactions of the business.  The...

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A:

Q: Data for Hermann Corporation are shown below: Per Unit $135 81 Percent of Sales 100% 60 Selling pric...

A:                       2a) increase in units    2900 * 120%     = 3480     Contrbution margin per...

Q: Non-statistical sampling is commonly used in audit practice. Describe each of the four items require...

A: Audit sampling is a method of investigation in which a sample of less than 100% of the total items i...

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A: Taxable income refers to the income gained by an entity on which the authorised government levied a ...

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A: Introduction A tax payer's net tax payable or refund is calculated by first determining gross tax li...

Q: Chapter 5: Receivables and Sales A company reports the following amounts at 12/31/YR2 (before any ye...

A: Bad Debts: Bad debts alludes to credits or extraordinary balances owed that are not generally consid...

Q: which metric is used as the profitability metric and explain what it evaluate?

A: Profitability Matric is somewhere helps to analyse the financial performance and financial position ...

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A: Solution Net income  refer to the amount an individual and business makes after deducting  costs , a...

Q: Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falco...

A: Solution Ordinary income is any type of income earned by an organisation or an individual that is ta...

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Q: basic earnings per share on the face of the income statement under each of the following assumptions...

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A: The Bonds are a source of financial which can be issued at par, at discount or at premium. When the ...

Q: What three roles can an accountant fill in relation to the AIS? Describe them.

A: Accounting information system is written as AIS. It is the system used by accountants, managers, aud...

Q: Requirement 1. Journalize the adjusting entries needed on December 31 for Watson Fishing Charters. A...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

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A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is recor...

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Q: Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in...

A: Answer -  Out of total distribution of 27,200, 8440 will be from AAA balance, 11560 will be from Ac...

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A: Manufacturing overhead, also known as indirect costs, which are incurred during the process of produ...

Q: Can i get a step by step explanation on the book to bank method?

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