Increase in operating income/net income

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• In reviewing the financial statements of NanoTech Co., you d

  Net income can increase while operating cash flows decrease due to several reasons that directly affect net income but not operating cash flow.

• Operating Activity for Cash Flows

  An increase in an asset account is deducted from net income, and an increase in a liability account is added back to net income.

• Determine net income

  Less: Increase in prepaid expenses 1,500 Less: Increase in accounts receivable 6,500 Cash flow from operation activities: $187,600 We can write Net Income - 3,500 + 8,600+13,300-6,000+2,400-1,500-6,500 = 187,600 Net Income =

• Accounting: Income Statement for Grania Company

  Cash Flows from (used by) Operating Activities Net Income $230,000 Adjustments to reconcile net income to net cash provided by operating activities Increase in Accounts receivable ($15,000) Increase in Accounts payable 13,000

• The answer to Degree of operating leverage

  If Old-Fashion Apple's sales increase by 6.7 percent, its net operating income will increase by .067*1.75, or 11.725 percent. If Mech-Apple's sales increase by 6.7 percent, its net operating income will increase by .067*3.74, or 25.06 percent.

• Operating Cost

  An increase in inventory is examined.

• Calculations with cash flow from operating activities

  444087 Calculations with cash flow from operating activities 4.7 Indicate whether each of the following items would result in net cash flow from operating activities being higher (H) or lower (L) than net income. (A) Decrease in accounts payable.

• Net cash provided by operating activities

  in Inventory -454 Increase in Accounts payable 489 Increase in Accrued Liabilities 351 Increase in Income taxes payable 70 Add Other operating cash Inflows 17 Net cash from operating activities 4451 Please see the attached

• Calculating CM Ratio, breakeven sales and operating leverage

  Expected sales increase next year 5% Calculate degree of operating leverage and increase in net operating income.

• Managerial Accounting : Contribution Margins, Break-even Point and Net Operating Income

  Net operating income = Sales-Total costs Contribution on extra $ 20000 sales will be CM Ratio* Sales= .4*20000=$8000 Thus net income will increase by $8000 as there is no increase in fixed costs. ________________________________ d.