The reason for NPV analysis is to see if the return on cash invested in one project is better than the return on cash invested in another project, while income is determined by many other variables that have nothing to do with cash.
a. 30k cash plus non-cash revenue and less the non-cash expenses is 27800. Kind of a backward approach to cahs flow which is net income less non-cash income plus non-cash expenses. b. 69,000 less the addition to accrued payroll of 10500 is $58500. c. if accounts receivable is the opening balance plus sales and less cash collected, then 36000 + 241000 - 224500 = 52,500. d.45000 - 7500 + 10000 = 47500. Net income is added to increases in current liabilities while increases in current assets is a deduction. The commonality of all of it is that accrual accounting requires you to take into account the transactions that don't affect the cash account.
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The reason for NPV analysis is to see if the return on cash invested in one project is better than the return on cash invested in another project, while income is determined by many other variables that have nothing to do with cash.
a. 30k cash plus non-cash revenue and less the non-cash expenses is 27800. Kind of a backward approach to cahs flow which is net income less non-cash income plus non-cash expenses. b. 69,000 less the addition to accrued payroll of 10500 is $58500. c. if accounts receivable is the opening balance plus sales and less cash collected, then 36000 + 241000 - 224500 = 52,500. d.45000 - 7500 + 10000 = 47500. Net income is added to increases in current liabilities while increases in current assets is a deduction. The commonality of all of it is that accrual accounting requires you to take into account the transactions that don't affect the cash account.