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Would be included in the operating section of its

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would be included in the operating section of its 2014 indirect methodstatement of cash flows?Add increase in inventory $5,000Subtract increase in inventory $5,000Add inventory balance $20,000Subtract inventory balance $20,000AnswerSubtract increase in inventory $5,000
Consider the same scenario as in the previous question: On March 31, 2015,Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previouspurchases. During April 2015, Preston sells Cars devices with a sales price of$10,000 and a cost to Preston of $8,000. During April, Cars pays Preston$12,000 against the amount owed to Preston. If Preston had no other sales andrecords no other collections from customers during the month of April, theoperating section of Preston's indirect method statement of cash flows for Aprilwill show the following de-accrual adjustments to net income:
Annie's Fitness sells a set of free weights to a customer for $1,000. Thecustomer pays $600 in cash and puts the rest on her store credit account.Which one of the following statements describes the most appropriateaccounting for the transaction?
Sardi Company estimates its 2015 tax expense to be $80,000. It makes acash payment of $20,000 to the tax authorities on December 31, 2015. Howshould this transaction be recorded by Sardi?
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Term
Winter
Professor
N/A
Tags
Balance Sheet, Generally Accepted Accounting Principles

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