Indicate the impact of the following on CASH and OPERATING Cycles, respectively. Use letter (I) to indicate an increase, the letter (D) for a decrease, or the letter (N) for no change. ___;___ a) The cash discounts offered by suppliers are increased: thus, payments are made earlier. ___;___ b) An increasing number of customers begin to py in cash instead of with credit. ___;___ c) Fewer raw materials than usual are purchased. ___;___ d) A greater percentage of raw material purchases are paid for with credit. ___;___ e) More finished goods are produced for inventory instead for order.
Indicate the impact of the following on CASH and OPERATING Cycles, respectively. Use letter (I) to indicate an increase, the letter (D) for a decrease, or the letter (N) for no change. ___;___ a) The cash discounts offered by suppliers are increased: thus, payments are made earlier. ___;___ b) An increasing number of customers begin to py in cash instead of with credit. ___;___ c) Fewer raw materials than usual are purchased. ___;___ d) A greater percentage of raw material purchases are paid for with credit. ___;___ e) More finished goods are produced for inventory instead for order.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 10MCQ: An increase in inventories is deducted from net income to arrive at operating cash flow because a....
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Indicate the impact of the following on CASH and OPERATING Cycles, respectively. Use letter (I) to indicate an increase, the letter (D) for a decrease, or the letter (N) for no change.
___;___ a) The cash discounts offered by suppliers are increased: thus, payments are made earlier.
___;___ b) An increasing number of customers begin to py in cash instead of with credit.
___;___ c) Fewer raw materials than usual are purchased.
___;___ d) A greater percentage of raw material purchases are paid for with credit.
___;___ e) More finished goods are produced for inventory instead for order.
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