why does depreciation and amortization affect a firm's cash balance on the balance sheet if it is a non-cash expense?

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Answer 1

Answer:

Answer:

When you are preparing a statement of cash flows, you start with operating income. Operating income is basically net income + adjustments. The adjustments that always increase the cash flows are depreciation expense and amortization expense. Even though they are not actual cash expenses, they reduce taxable income and therefore, total taxes paid.

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Employees who record and are paid for the exact of amount of time spent working are paid on a(n) _____ basis.

Money that your company has in the bank in case of unexpected financial needs or in case sales slow down is called ____________.a. An asset fund
b. A cash reserve
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d. Insurance

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The answer is B - cash reserve

How do you know which unit of a conversion factor must be in the denominator?

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If it does help please Mark Brainliest...

The unit that is used in the denominator is the one to cancels the unit that appears in a numerator.

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Ed, an employee of the Natural Color Company, suffered from a rare disease that was very expensive to treat. The local media ran several stories about Ed’s problems, and the family created a website that generated more than $10,000 in gifts from individuals to help pay the medical bills. Ed’s employer provided hospital and medical insurance for its employees, but the policy did not cover Ed’s illness. When it became apparent that Ed could not pay all of his medical expenses, the hospital canceled the $25,000 Ed owed at the time of his death. After Ed’s death, his former employer paid Ed’s widow $12,000 in "her time of need." Ed’s widow also collected $50,000 on a group term life insurance policy paid for by Ed’s employer. What are Ed’s and his widow’s gross income?

Answers

Answer:

Ed and his Widow's Gross Income is:

$97,000

Explanation:

a) Data and Calculations:

Gifts from individuals $10,000

Medical expense offset 25,000

Time of need pay 12,000

Group life insurance 50,000

Gross income $97,000

b) Ed and his widow's gross income is $97,000. It is the sum of all forms of earnings before any deductions or taxes. The gross income is higher than the net income, which is defined as the gross income minus taxes and other deductions.

Final answer:

Ed's gross income includes the gifts and life insurance payout, but not the support received by his widow.

Explanation:

Ed's gross income includes the $10,000 in gifts from individuals and the $50,000 collected on the group term life insurance policy. These amounts are considered taxable income. The $12,000 paid to Ed's widow in her time of need is not considered gross income because it can be classified as a gift or as support received on account of the marital relationship.

Learn more about Gross Income here:

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MaxiesBalance sheet as at june 30, 2005
$ $ $
fixed assets(at cost$22890) 10060
current asset
stock. 810
debtor. 4330
prepayment 1350
cash at bank 8370
cash in hand 150

less current liabilities
sundry 200
loan interest 500. 700. 14310
net current asset 24370
loan 10000
14370
capital (July 1 2004 ) 21110
add profit. 29860
50970
less drawing 36600
14370

what is the current ratio