Ask Question
BusinessBusiness
29 May, 07:51

During 2019, the Bowtie Company reported net income of $1,872 million, depreciation expense of $1,412 million and $978 million paid for purchases of property, plant, and equipment. Using the indirect method of preparing the statement of cash flows, what would be the effect on cash flows from operating activities during 2019

+2
Answers (1)
  1. 29 May, 08:17
    0
    The depreciation will be added back to the net income making the net cash flows from operating activities during 2019 to be $3,284 million.

    Explanation:

    The cash flow statement shows the movement in cash balance at the start and end of an accounting period. This is as a result of the company's activities which may be recognized in 3 groups namely; operating, investing and financing activities.

    The non-cash items deducted or added in the income statement while computing the net income are considered in the operating activities section of the cash flow statement while any amount paid for the purchase of an asset or received from the disposal of an asset is recognized in the investing section of the cash flow statement.

    The effect of the stated transactions on cash flows from operating activities during 2019 is that depreciation will be added back to the net income

    = $1,872 million + $1,412 million

    = $3,284 million
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “During 2019, the Bowtie Company reported net income of $1,872 million, depreciation expense of $1,412 million and $978 million paid for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If current assets were $100,000 in 20x7 and $88,000 in 20x8, what was the amount of increase or decrease? Question 20 options: The percentage decrease was 13.64%. The percentage increase was 13.64%. The percentage decrease was 12%.
Answers (2)
North Shore Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $138,000 Direct materials cost 85,000 Equipment depreciation (straight-line) 24,000 Factory insurance 19,000 Factory manager's salary
Answers (1)
What type of tax has the same percentage tax rate for everyone regardless of income?
Answers (1)
During the month of March, Baker's Express purchased 10,000 pounds of flour at $1 per pound. The production department used 9,500 pounds of flour to produce 100,000 biscuits.
Answers (1)
Financial markets are important for bringing equilibrium to the loanable funds market, but do not affect the efficient allocation of scarce resources in the long-run. a. True b. False
Answers (1)
New Questions in Business
Technically a property can be listed at any price, however deliberately misleading a client as to the market value of the property to guarantee a listing is an ethical violation. This practice is commonly referred to as
Answers (1)
Spalding produces large numbers of solf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Spalding uses: production to order mass production custom production process production Inventory fulfillment
Answers (1)
2. What safety measures do you have in place for yourself, your staff, and your customers? want sro vou doing to maxiumize your profits at this time?
Answers (1)
The selling divisionâs unit sales price is $25 and its unit variable cost is $15. its capacity is 10,000 units. fixed costs per unit are $6. current outside sales are 8,000 units.
Answers (1)
A large FMCG company decides to test market Kora, a new brand of face cleanser, to be launched soon. The company initially distributes a few free samples to some prospective consumers.
Answers (1)
Home » Business » During 2019, the Bowtie Company reported net income of $1,872 million, depreciation expense of $1,412 million and $978 million paid for purchases of property, plant, and equipment.
Sign Up Forgot Password?