How would a $4,000 increase in AR and a $2,000 decrease in inventory affect cash? Select one: a. $2,000 source; $4,000 use b. $4,000 source; $2,000 use c. $2,000 source d. $6,000 source e. $4,000 source; $2,000 source
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How would a $4,000 increase in AR and a $2,000 decrease in inventory affect cash?
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- Aa 129.Merchandise purchased for resale.. • Freight In.. • Freight Out. • Purchased returns. Interest on inventory loan. What is the inventoriable cost of the purchase? Gamma Company provided the following information for the current year: .P 4,000,000 100,000 50,000 20,000 200,000 A. P4,280,000 В. Р4,030,000 С. Р4,080,000 D. P4,130,000(i) Inventory = (60.83 – 54.75) ´ $32,876.7123 = $199,890.41. (ii) Receivables = (73 – 65.70) ´ $41,095.8904 = $300,000. (iii) Payables = (33.46 – 30.42) ´ $32,876.7123 = $99,945.21 How did you compute the $32,876.7123 for inventory, $41,095.8904 for receivables, and $32,876.7123 for payables?
- Assume that Company A purchased $1,000 of inventory on account (i.e. on credit) from Company B. What impact will Company A's picking up of the inventory have on Company A's income statement, balance sheet, and statement of cash flows? income statement (reduce income), balance sheet (assets increase, liabilities increase, equity no effect) and statement of cash flows (no effect) O income statement (reduce income), balance sheet (increase assets, liabilities increase, equity decrease) and statement of cash flows (no effect) income statement (decrease income), balance sheet (assets increase, liabilities increase, equity decrease) and statement of cash flows (decrease cash on hand) income statement (no effect), balance sheet (assets increase, liabilities increase, equity no effect) and statement of cash flows (no effect)Use the given information about XYZ Pty Ltd to answer the questions that follow: Sales P10, 000,000 Average inventories P2, 000,000 Cost of goods sold P8, 000,000 Receivables P666, 667 Average Accounts payable P666, 667 Required: a. Define the cash conversion cycle. b. Calculate XYZ’s Average Age of Inventory. c. Calculate XYZ’s Average Collection Period. d. Calculate the Accounts Payable Period. e. Calculate the XYZ’s cash conversion cycle. f. Advise XYZ on what they should do to reduce their cash conversion cycle. g. Explain two strategies that XYZ can use to fund its cash conversion cycle requirements.Enter the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In Case B, work from the bottom up.) Net sales revenue Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income (loss) $ Case A 11,000 4,880 10,210 $ 7,630 200 $ 1,760 $ Case B 6,560 15,200 11,030 $ 1,330 (530) $ Case C $ 3,910 9,430 13,340 $ 6,090 4,420 700 970
- Fay Company reported the following transactions: . • Bought $115 of inventory • Sold $60 of inventory for $190 cash • Sold $55 of inventory for $100 on credit • Received a $50 prepayment Enter your answer What effect do these transactions have on Net Income? $ such that increases in net income are positive and decreases in net income are negative.Cop(TIP: Make use of a T-account analysis, instead of a formula, to 5. Inventory, beg. P33,000; Net purchases, P128,000; Cost of 6. Inventory, beg. P89,000; Net purchases, P217,000; Cost of 7. Inventory, beg. P20,000; Net purchases, 176,000; Inventory, P190,000; Cost of goods sold, P169,000. How much is the 13. Cost of goods sold, 720,0003; Increase in inventory during the 14. Inventory, beg., P4,000; Total goods available for sale, change in inventory during the year? increase (decrease) Chapter 10 Account 15. Total goc Inventor 406 during th sold? a PROBLEM The trial bal. answer items 5 to 15 below.) 6. Inventory, beg. P89,000; Net purchases, 9217,000; Co goods sold, P154,000. How much is the Inventory, end.? 7. Inventory, beg. P20,000; Net purchases, P176,000; Inventory end., P90,000. How much is the Cost of goods sold? Accoun Cash 8. Inventory, beg. P24,000; Cost of goods sold, 989.000: Inventory, end. P19,000. How much is the Net purchases? Invento Equipm Accum 9. Inventory, end.…