A. Management has developed a new inventory management system that it projects will reduce company inventory from $15,000,000 at the beginning of the next operating year to $12,000,000 at the end of the next operating year: will cash be generated by inventory or needed to fund inventory? And, by how much? a. $3,000,000 of cash generated by reducing inventory b. $12,000,000 of cash needed to fund inventory c. $254,000 of cash needed to fund the inventory reduction program d. $3,000,000 needed to fund inventory B. Accounts payable are projected to be $300,000 at the beginning of the next operating year and $500,000 at the end of the next operating year: will cash be generated by accounts payable or needed to fund accounts payable? And, by how much? a. $200,000 of cash generated by the increase in accounts payable (borrowed more money) b. $500,000 of cash needed to fund accounts payable c. $200,000 of cash needed to fund accounts payable d. No cash will be generated or consumed by accounts payable
A. Management has developed a new inventory management system that it projects will reduce company inventory from $15,000,000 at the beginning of the next operating year to $12,000,000 at the end of the next operating year: will cash be generated by inventory or needed to fund inventory? And, by how much? a. $3,000,000 of cash generated by reducing inventory b. $12,000,000 of cash needed to fund inventory c. $254,000 of cash needed to fund the inventory reduction program d. $3,000,000 needed to fund inventory B. Accounts payable are projected to be $300,000 at the beginning of the next operating year and $500,000 at the end of the next operating year: will cash be generated by accounts payable or needed to fund accounts payable? And, by how much? a. $200,000 of cash generated by the increase in accounts payable (borrowed more money) b. $500,000 of cash needed to fund accounts payable c. $200,000 of cash needed to fund accounts payable d. No cash will be generated or consumed by accounts payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A. Management has developed a new inventory management system that it projects will reduce company inventory from $15,000,000 at the beginning of the next operating year to $12,000,000 at the end of the next operating year: will cash be generated by inventory or needed to fund inventory? And, by how much?
a. $3,000,000 of cash generated by reducing inventory
b. $12,000,000 of cash needed to fund inventory
c. $254,000 of cash needed to fund the inventory reduction program
d. $3,000,000 needed to fund inventory
B. Accounts payable are projected to be $300,000 at the beginning of the next operating year and $500,000 at the end of the next operating year: will cash be generated by accounts payable or needed to fund accounts payable? And, by how much?
a. $200,000 of cash generated by the increase in accounts payable (borrowed more money)
b. $500,000 of cash needed to fund accounts payable
c. $200,000 of cash needed to fund accounts payable
d. No cash will be generated or consumed by accounts payable
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