Balance Sheet and Correct Answer Essay

807 Words May 14th, 2013 4 Pages
* 1. Currently product Axe is charged $3,635,223 depreciation on the income statement of Andrews. Andrews plans to make investment that will increase this depreciation to take advantage of changes in the tax code. Will this?a. Decrease net cash from operations on the cash flow statementb. Increase net cash from operations on the cash flow statementc. Just impact the balance sheet.d. Have no impact on the net cash from operations as depreciation appears in both cash flow and income statementAnswer | Selected Answer: | C. Just impact the balance sheet. | Correct Answer: | B. Increase net cash from operations on the cash flow statement | Response Feedback: | Since an increase in depreciation reduces net …show more content…
Looking at Ferris’s balance sheet, suppose they want to increase its leverage to 3.5 by issuing bonds and purchasing plant and equipment. a. How much plant

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