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No you dont. Think about it, part of the equation for free cash flow is defined as subtracting out changes in working capital, capex, and changes in deferred taxes. changes in deferred taxes should be used in calculating cash taxes, not changes in working capital
There are two sides to the entry, upon cash receipt you debit cash, credit deferred income. To apply the deferred income, the entry is debit deferred income and credit revenue.
Cash dividend paid has nothing to deal with net income as net income is calculated first and after that it is distributed. If cash dividend is received then it is included in net income calculations and increases the net income.
The cash coverage ratio is useful for determining the amount of cash available to pay for interest, and is expressed as a ratio of the cash available to the amount of interest to be paid.To calculate the cash coverage ratio, take the earnings before interest and taxes (EBIT) from the income statement, add back to it all non-cash expenses included in EBIT (such as depreciation and amortization), and divide by the interest expense. The formula is: Earnings Before Interest and Taxes + Non-Cash Expenses Interest Expense.
If it has been prepaid by a customer and you show the cash related to this prepayment on your books, it is straight liability. You can think of this as something that you have but does not belong to you until you earn it. It is not deferred liability.
No you dont. Think about it, part of the equation for free cash flow is defined as subtracting out changes in working capital, capex, and changes in deferred taxes. changes in deferred taxes should be used in calculating cash taxes, not changes in working capital
There are two sides to the entry, upon cash receipt you debit cash, credit deferred income. To apply the deferred income, the entry is debit deferred income and credit revenue.
As it is a advance receipt the journal entry would be cash dr. to deferred revenue
Cash dividend paid has nothing to deal with net income as net income is calculated first and after that it is distributed. If cash dividend is received then it is included in net income calculations and increases the net income.
Changes in financial position Sources and uses of funds provided from operations that alter a company's cash flow position: depreciation, deferred taxes, other sources, and capital expenditures.
A deferred payment price may be different from a price of cash and carry. To pay later is to defer and is usually more expensive.
The cash coverage ratio is useful for determining the amount of cash available to pay for interest, and is expressed as a ratio of the cash available to the amount of interest to be paid.To calculate the cash coverage ratio, take the earnings before interest and taxes (EBIT) from the income statement, add back to it all non-cash expenses included in EBIT (such as depreciation and amortization), and divide by the interest expense. The formula is: Earnings Before Interest and Taxes + Non-Cash Expenses Interest Expense.
The IRS, generally speaking only takes one form of payment - cash or it's equivalent is acceptable. There have been known instances where other types of property were taken in lieu of cash but this is rare and unusual. So the answer would be a most definite yes. How else would you pay the estate taxes? Charles Coker ,CPA
The cash value of something is the value before taxes. Net or Netto cash value is after taxes.
Yes, Expenses done while payment not made is a reason for increase in cash flows because if cash is paid then there would be a reduction in cash while deferred it to future time has actually increase the cash flow for the time being.
Non cash items like depreciation and amortization should not be included in cash flow statement.
Deferred LC is very usefull for both importers and exporters. 1-Importer does not hav to pay in-advance when uses deferred lc 2-but exporter guarantees that he will get the payment in a certain time after shipment and also if he wants he can discount in on the same day or on any days when the LC is booked. 3- deferred LC helps to the buyer who does not have cash but has credit in his bank 4- deferred LC helps to the seller, so he does not have to look for a buyer who has only cash money.He can discount the LC with a very low cost anytime.