What effect does depreciation have on an entitys cash flow? Why is depreciation added back to net
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
Depreciation has no effect on an entitys cash flow Its just th...View the full answer
Answered By
Muhammad Haroon
More than 3 years experience in teaching undergraduate and graduate level courses which includes Object Oriented Programming, Data Structures, Algorithms, Database Systems, Theory of Automata, Theory of Computation, Database Administration, Web Technologies etc.
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Why are depreciation and amortization added back to net income when calculating CFO using the indirect method? How much did High Liner expense for depreciation and amortization in 2011? What would...
-
When using the indirect method, why is depreciation added back to the net income figure when computing cash flow from operations?
-
When the indirect method is used to report cash flow from operations, what two operating cash flow items must be disclosed either on the cash flow statement or in the notes?
-
What are the upper and lower 2.5th percentiles for a chi-square distribution with 2 df? What notation is used to denote these percentiles? Pulmonary Disease The data in Table 6.10 concern the mean...
-
Suppose that the domestic quantity of loanable funds supplied equals the domestic quantity of loanable funds demanded. In other words, there is no foreign lending or borrowing. If the government...
-
Cash Budget Sharpe Corporation's projected sales first 8 month of 2006 are: Of Sharp's sales, 10% is for cash, another 60% is collected in the month following sales, and 30% is collected in the...
-
What was the firm's times-interest-earned ratio for 2018 ? a. 4 b. 3 c. 5 d. 6 Sales revenues for 2018 were \(\$ 800,000\), gross profit was \(\$ 320,000\), and net income was \(\$ 36,000\). The...
-
Isner Racket Company manufactures two types of tennis rackets, the Ace and Pro Tour models. The production budget for August for the two rackets is as follows: Both rackets are produced in two...
-
The distance between blocks is 210 meters.Each block has its own server room for housing servers and network devices.How the two activities being executed? Explain the difference between 'y' and "xy"...
-
The Hernandez Manufacturing Company has two producing departments, machining and assembly. Mr. Hernandez recently automated the machining department. The installation of a CAM system, together with...
-
What characteristics distinguish capital assets from inventory?
-
Academic research has shown that the stock price of a public company isnt affected by the depreciation method an entity uses. Why do you think this is the case? Does the depreciation method an entity...
-
Define strategic planning. What is its principal role in Six Sigma initiatives?
-
We have two different types of budgets. Flexible and Static budgets. Each of the budgets have pros and cons. Please discuss how you think the flexible budget is superior to that of the static budget....
-
Preliminary data is reviewed in relation to what feature of the control charts, thereby helping to decide what is theh data to discard?
-
Suppose you deposit each of the following cash flows into a bank account: $4,0001 year from today; $8,0003 years from today; $4,0007 years from today. If the account that earns an annual rate of ...
-
Solve the equation. (5y+2)(y+7)=-3(5y+2)
-
What equity financing options could the club have considered to raise some of the capital to build the new stadium?
-
If a platinum nugget has a mass of 214.50 g and a volume of 10.0 cm 3 , what is the density of the metal? Strategy Plan STEP 1: What unit is asked for in the answer? STEP 2: What given value is...
-
Write a paper about how diet relates to breast cancer in women study design to use: case control study purpose & rationale the purpose of this final project is to utilize the methods and...
-
The space shuttle typically orbits Earth at an altitude of about \(300 \mathrm{~km}\). (a) By what factor is the shuttle's distance to the center of Earth increased over that of an object on the...
-
The following information is taken from the accrual accounting records of Kroger Sales Company: a. During January, Kroger paid $8,500 for supplies to be used in sales to customers during the next two...
-
Each of the following situations relates to the recognition of revenue: a. A store sells a gift card in December which will be given as a Christmas present. The card is not redeemed until January. b....
-
Each of the following situations relates to the recognition of revenue: a. A store sells a gift card in December which will be given as a Christmas present. The card is not redeemed until January. b....
-
how would I structure this assignment for currency AUD/GBP Conduct independent research in order to form a view regarding current and future market conditions and report your findings explaining your...
-
Alphonse Inc. has a return on equity of 1 2 percent, 2 8 , 0 0 0 shares of stock outstanding, and a net income of $ 9 8 , 0 0 0 . What are earnings per share? ( Do not round intermediate...
-
Gavin Mills has an existing facility that it paid 3 0 , 0 0 0 , 0 0 0 for 1 0 years ago. It has 3 choices for this facility now: sell it outright for 9 . 5 M today, lease it for the next 4 years to a...
Study smarter with the SolutionInn App