Adelphi Company has budgeted activity for March to reflect a net income of $125,000. All sales are credit sales. Receivables are planned to increase (decrease -) by $39,000 payables to increase (decrease -) by $25,000 and Depreciation Expense is $44,000. Use this information to determine how much cash will increase (decrease) during the month of March.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...
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Adelphi Company has budgeted activity for March to reflect a net income of $125,000. All sales
are credit sales. Receivables are planned to increase (decrease -) by $39,000 payables to increase
(decrease -) by $25,000 and Depreciation Expense is $44,000.
Use this information to determine how much cash will increase (decrease) during the month of
March.
Transcribed Image Text:Adelphi Company has budgeted activity for March to reflect a net income of $125,000. All sales are credit sales. Receivables are planned to increase (decrease -) by $39,000 payables to increase (decrease -) by $25,000 and Depreciation Expense is $44,000. Use this information to determine how much cash will increase (decrease) during the month of March.
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