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Create a partial common size balance sheet below: Common-Size Balance Sheet 2014

ID: 2639608 • Letter: C

Question

Create a partial common size balance sheet below:

Common-Size Balance Sheet

2014

Percentage

2013

Percentage

Assets

Cash

800

1,600

Accounts Receivable

6,194

5,666

Inventory

6,254

5,838

Fixed Assets (Land, Building, etc)

28,380

25,214

Accumulated Depreciation

-6,950

-6,176

Total Assets

34,678

32,142

If a current asset goes up from year to year, it will be recorded on the statement of cash flows?

a. As an increase in cash from operations

b. As an increase in cash from investing

c. As a decrease in cash from operations

d. As a decrease in cash from investing

Which of the following is a non-cash expense that must be added back to net income when completing the cash flows from operating activities using the indirect method?

a. Land

b. Depreciation

c. Dividends

d. Long term debt

Common-Size Balance Sheet

2014

Percentage

2013

Percentage

Assets

Cash

800

1,600

Accounts Receivable

6,194

5,666

Inventory

6,254

5,838

Fixed Assets (Land, Building, etc)

28,380

25,214

Accumulated Depreciation

-6,950

-6,176

Total Assets

34,678

32,142

Explanation / Answer

Answer

If a current asset goes up from year to year, it will be recorded on the statement of cash flows:-

As an increase in cash from investing

a non-cash expense that must be added back to net income is:-

Depreciation

Balance sheet of the question is not in correct format so kindly post in correct format.

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