Excessive earnings management typically begins as a result of a. 21. a downturn
ID: 2571000 • Letter: E
Question
Excessive earnings management typically begins as a result of a. 21. a downturn in business. regulatory investigation. o. a violation of genng principles d. pressure to meet the expectations of stakeholders. 22. The following information is available from Earthlink Corporation's accounting records for the year end December 31, 2017: $1,020,000 Cash paid to suppliers and employees Cash dividends paid 60, 00 1,740,000 20,000 220,000 Net cash flow provided by operating activities for 2017 was a. $500,000. b. $520,000. c. $440,000. d. $460,000. 23. Which of the following earnings management techniques is frequently associated with start-up companie a. Expensing purchased in-process research and development. b Recognizing revenue when a contract is signed and before goods are delivered or services are provided. lndiustments that cause earnings to meet analysts' expectations.Explanation / Answer
Solution 22:
Net cash flow provided by operating activities for 2017 is:
Cash received from customers 1,740,000
Cash paid to suppliers and employees -1,020,000
Cash received for Rent 20,000
Taxes paid -220,000
Cash flow from operating activities 520,000
So correct answer is B.
Note: Cash dividend paid is deducted as cash flow from financing activities.
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